----

----

| West Virginia                                                       | 20-2088726                               |
|---------------------------------------------------------------------|------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer IdentificationNo.) |

|   | Title of Each Class                                                  |   |
|--------|----------------------------------------------------------------------|--------|
|   | Limited      Partnership Interests and General Partnership Interests |   |

| Large      accelerated filer     £ | Accelerated      filer     £    |
|------------------------------------------------------------------|---------------------------------------------------------------|
|                                                             |                                                          |
| Non-accelerated      filer     £   | Smaller      reporting company     T |

----

----

----

PDC 2005

|                 |                                                                                                                    | Page   |
|----------------------|-------------------------------------------------------------------------------------------------------------------------|--------|
| PART      I          |
|                 |                                                                                                                    |   |   |
|                 | Explanatory Note                                                                                                        | 1      |   |
| Item      1          | Business                                                                                                                | 2      |   |
| Item      1A         | Risk Factors                                                                                                            | 12     |   |
| Item      1B         | Unresolved Staff Comments                                                                                               | 19     |   |
| Item      2          | Properties                                                                                                              | 19     |   |
| Item      3          | Legal Proceedings                                                                                                       | 21     |   |
| Item      4          | Submission of Matters to a Vote of Security      Holders                                                                | 21     |   |
|                 |                                                                                                                    |   |   |
| PART      II         |
|                 |                                                                                                                    |   |   |
| Item      5          | Market for Registrants’ Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities | 21     |   |
| Item      6          | Selected Financial Data                                                                                                 | 23     |   |
| Item      7          | Management’s Discussion and Analysis of Financial Condition and      Results of Operations                        | 23     |   |
| Item      7A         | Quantitative and Qualitative Disclosures about Market      Risk                                                         | 33     |   |
| Item      8          | Financial Statements and Supplementary Data                                                                             | 37     |   |
| Item      9          | Changes in and Disagreements With Accountants on Accounting and      Financial Disclosure                               | 37     |   |
| Item      9A(T)      | Controls and Procedures                                                                                                 | 38     |   |
| Item      9B         | Other Information                                                                                                       | 42     |   |
|                 |                                                                                                                    |   |   |
| PART      III        |
|                 |                                                                                                                    |   |   |
| Item      10         | Directors, Executive Officers and Corporate      Governance                                                             | 42     |   |
| Item      11         | Executive Compensation                                                                                                  | 45     |   |
| Item      12         | Security Ownership of Certain Beneficial Owners and Management      and Related Stockholder Matters                     | 46     |   |
| Item      13         | Certain Relationships and Related Transactions, and Director      Independence                                          | 46     |   |
| Item      14         | Principal Accounting Fees and Services                                                                                  | 47     |   |
|                 |                                                                                                                    |   |   |
| PART      IV         |
|                 |                                                                                                                    |   |   |
| Item      15         | Exhibits, Financial Statement Schedules                                                                                 | 47     |   |
|                 |                                                                                                                    |   |
| Signatures           | 49                                                                                                                      |   |
|                 |                                                                                                                    |   |
| Financial Statements | F-1                                                                                                                     |   |

----

Index

Exp

|   | · | changes      in production volumes, worldwide demand, and commodity prices for      petroleum natural resources; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | risks      incident to the operation of natural gas and oil  wells; |
|--------|--------|---------------------------------------------------------------------|

|   | · | future      production and development costs; |
|--------|--------|-----------------------------------------------|

|   | · | the      effect of existing and future laws, governmental regulations and the      political and economic climate of the United  States; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      effect of natural gas and oil derivatives  activities; |
|--------|--------|-----------------------------------------------------------------|

|   | · | availability      of capital and conditions in the capital markets;  and |
|--------|--------|--------------------------------------------------------------------------|

|   | · | losses      possible from pending and/or futurelitigation. |
|--------|--------|------------------------------------------------------------|

----

Index

Item

|                                  |   | 2006   |   |   | 2005   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|
|                                  |   | Gross  |   |   | Net    |   |   | Gross |   |   | Net |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Development      wells:               |   |   |   |   |   |   |   |   |   |   |   |   |
| Drilled,      fractured and producing |   |   | 8.0    |   |   |   | 6.8 |   |   |   | 43.0 |   |   |   | 40.5 |   |
| Drilled      and not completed        |   |   | -      |   |   |   | - |   |   |   | 9.0 |   |   |   | 7.6 |   |
| Dry      hole                         |   |   | 1.0    |   |   |   | 0.8 |   |   |   | - |   |   |   | - |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                 |   |   | 9.0    |   |   |   | 7.6 |   |   |   | 52.0 |   |   |   | 48.1 |   |

----

Index

----

Index

----

Index

----

Index

| Illustration of Partnership Revenue      Sharing |   |
|--------------------------------------------------|--------|
|                                             |   |
| Entity or Interest Owners                        |   | Partnership Interests |   |   | Gross Revenue Interests (Partnership Revenues and      Third Party Royalties) |   |
|                                             |   |   |   |   |   |   |
|                                             |   |   |   |   | If 121⁄2%      Royalty: |   |   | If 25% Royalty: |   |
|                                             |   |   |   |   |   |   |   |   |   |
| PDC, the Managing General      Partner           |   |   | 20 | % |   |   | 17.50 | % |   |   | 15.00 | % |
| Investor Partners                                |   |   | 80 | % |   |   | 70.00 | % |   |   | 60.00 | % |
| Landowners and Over-riding Royalty      Owners   |   |   | N/A |   |   |   | 12.50 | % |   |   | 25.00 | % |
| Totals                                           |   |   | 100 | % |   |   | 100.00 | % |   |   | 100.00 | % |

----

Index

|                                                                    |   | Year      Ended December 31, 2007 |      |   | Year      Ended December 31, 2006 |   |       | Period      May 18, 2005 (date of inception) through December 31, 2005 |   |
|-------------------------------------------------------------------------|--------|---------------------------------------------|-----------|--------|---------------------------------------------|--------|------------|--------------------------------------------------------------------------------------------|--------|
| Production                                                              |   |                                        |      |   |                                        |   |       |                                                                                       |   |
| Oil      (Bbls)                                                         |   |                                        | 49,439    |   |                                        |   | 104,640    |                                                                                       |   |   | 60,050 |   |
| Natural      gas (Mcf)                                                  |   |                                        | 1,005,581 |   |                                        |   | 1,296,471  |                                                                                       |   |   | 116,200 |   |
| Natural      gas equivalent (Mcfe)                                      |   |                                        | 1,302,215 |   |                                        |   | 1,924,311  |                                                                                       |   |   | 476,500 |   |
| Oil      and Gas Sales                                                  |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Oil      sales                                                          |   | $                                           | 2,844,991 |   |                                        | $      | 6,630,060  |                                                                                       |   | $ | 3,325,434 |   |
| Gas      sales                                                          |   |                                        | 4,927,808 |   |                                        |   | 6,965,205  |                                                                                       |   |   | 1,117,556 |   |
| Total      oil and gas sales                                            |   | $                                           | 7,772,799 |   |                                        | $      | 13,595,265 |                                                                                       |   | $ | 4,442,990 |   |
|                                                                    |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Realized      Gain (Loss) on Derivatives, net                           |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Oil      derivatives - realized (loss) gain                             |   | $                                           | (15,155   | )      |                                        | $      | (4,365     | )                                                                                          |   | $ | (31,322 | ) |
| Natural      gas derivatives - realized gain (loss)                     |   |                                        | 494,171   |   |                                        | $      | 133,772    |                                                                                       |   | $ | - |   |
| Total      realized gain (loss) on derivatives, net                     |   | $                                           | 479,016   |   |                                        | $      | 129,407    |                                                                                       |   | $ | (31,322 | ) |
| Average      Sales Price                                                |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Oil      (per Bbl)                                                      |   | $                                           | 57.55     |   |                                        | $      | 63.36      |                                                                                       |   | $ | 55.38 |   |
| Natural      gas (per Mcf)                                              |   |                                        | 4.90      |   |                                        |   | 5.37       |                                                                                       |   |   | 9.62 |   |
| Natural      gas equivalent (per Mcfe)                                  |   |                                        | 5.97      |   |                                        |   | 7.07       |                                                                                       |   |   | 9.32 |   |
| Average      Sales Price (including realized gain (loss) onderivatives) |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Oil      (per Bbl)                                                      |   |                                        | 57.24     |   |                                        |   | 63.32      |                                                                                       |   |   | 54.86 |   |
| Natural      gas (per Mcf)                                              |   |                                        | 5.39      |   |                                        |   | 5.48       |                                                                                       |   |   | 9.62 |   |
| Natural      gas equivalent (per Mcfe)                                  |   |                                        | 6.34      |   |                                        |   | 7.13       |                                                                                       |   |   | 9.26 |   |
|                                                                    |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Average      Production Cost (Lifting Cost) per Mcfe                    |   | $                                           | 1.71      |   |                                        | $      | 0.98       |                                                                                       |   | $ | 1.43 |   |

----

Index

|                                 |   | Year Ended December 31,      2007 |       |
|--------------------------------------|--------|----------------------------------------|------------|
|                                 |   | Oil (Bbl)                              |       |   | Gas (Mcf) |   |   | Total (Mcfe) |   |
| Proved      developed                |   |                                   | 262,026    |   |   |   | 8,112,470 |   |   |   | 9,684,626 |   |
| Proved      undeveloped              |   |                                   | 274,271    |   |   |   | 1,209,283 |   |   |   | 2,854,909 |   |
| Total      Proved                    |   |                                   | 536,297    |   |   |   | 9,321,753 |   |   |   | 12,539,535 |   |
|                                 |   |                                   |       |   |   |   |   |   |   |   |   |   |
|                                 |   | Proved                                 |       |   | Proved |   |   | Total |   |
|                                 |   | Developed                              |       |   | Undeveloped |   |   | Proved |   |
|                                 |   |                                   |       |
| Estimated      future net cash flows |   | $                                      | 49,049,159 |   |   | $ | 21,353,686 |   |   | $ | 70,402,845 |   |
| Standardized      measure            |   |                                   | 27,644,154 |   |   |   | 8,248,691 |   |   |   | 35,892,845 |   |

|   | 1. | Worker's      compensation insurance in full compliance with the laws for the states in      which the operator has employees; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Operator's      bodily injury liability and property damage liability insurance, each with      a limit of $1 million; |
|--------|----|------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | 3. | Employer's      liability insurance with a limit of not less than $1    million; |
|--------|----|----------------------------------------------------------------------------------|

|   | 4. | Automobile      public liability insurance with a limit of not less than $1 million per      occurrence, covering all automobile equipment;  and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Operator's      umbrella liability insurance with a limit of $50 million for each well      location and in the aggregate. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

Item

----

Index

|   | · | PDC      might sponsor additional drilling programs in the future that could      conflict with the interests of the Partnership.  PDC and      affiliates have the right to organize and manage oil and natural gas      drilling programs in the future similar to the Partnership and to conduct      production operations now and in the future on its own behalf or for other      individual investor partners.  This situation could lead to a      conflict between the position of PDC as Managing General Partner of the      Partnership and the position of PDC or its affiliates as managing general      partner or sponsor of additionalprograms. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | PDC      has a fiduciary duty as Managing General Partner to the      Partnership.  PDC acts as managing general partner currently for      33 limited partnerships, including this Partnership, and is accountable to      all of the partnerships as a fiduciary.  PDC therefore has a      duty to exercise good faith and deal fairly with the investor partners of      each partnership.  PDC’s actions taken on behalf of one or more      of these partnerships could be disadvantageous to the Partnership and      could fall short of the full exercise of its fiduciary duty to the      Partnership. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | There      are and will continue to be transactions between PDC, its affiliates and      the Partnership.  PDC, as operator of the Partnership, has and      will continue to provide drilling, completion and operation services to      the Partnership’s wells.  Although the prices that PDC has      charged, and will charge, to the Partnership for the supplies and services      provided by PDC and affiliates to the Partnership will be competitive with      the prices charged by unaffiliated persons for the same supplies and      services, PDC will benefit financially from this    relationship. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

----

Index

----

Index

Item 1B

Item

|                                  |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                  |   | Gross  |   |   | Net    |   |   | Gross  |   |   | Net |   |   | Gross |   |   | Net |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Development      wells:               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Drilled,      fractured and producing |   |   | 51.0   |   |   |   | 47.3   |   |   |   | 51.0 |   |   |   | 47.3 |   |   |   | 43.0 |   |   |   | 40.5 |   |
| Drilled      and not completed        |   |   | -      |   |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | 9.0 |   |   |   | 7.6 |   |
| Dry      hole                         |   |   | 1.0    |   |   |   | 0.8    |   |   |   | 1.0 |   |   |   | 0.8 |   |   |   | - |   |   |   | - |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                 |   |   | 52.0   |   |   |   | 48.1   |   |   |   | 52.0 |   |   |   | 48.1 |   |   |   | 52.0 |   |   |   | 48.1 |   |

----

Index

----

Index

Item

Item 

| Item 5. | Market      for Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities |
|---------|------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | PDC      will complete the development work and will bill the Partnership for the      work performed and will be reimbursed from future production;      or |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Partnership will retain revenues from operations until it has accumulated      or borrowed sufficient funds to pay for the development work, at which      time PDC will commence the work, and PDC will be reimbursed as the work      progresses from retained revenues. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

Ite

Ite

----

Index

|                                                    |   | Year      Ended December 31, 2007 |      |   | Year      Ended December 31, 2006 |   |       | Period      May 18, 2005 (date of inception) through December 31, 2005 |   |
|---------------------------------------------------------|--------|---------------------------------------------|-----------|--------|---------------------------------------------|--------|------------|--------------------------------------------------------------------------------------------|--------|
| Number      of producing wells (end of period)          |   |                                        | 51        |   |                                        |   | 51         |                                                                                       |   |   | 43 |   |
|                                                    |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Production:                                             |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Oil      (Bbl)                                          |   |                                        | 49,439    |   |                                        |   | 104,640    |                                                                                       |   |   | 60,050 |   |
| Natural      gas (Mcf)                                  |   |                                        | 1,005,581 |   |                                        |   | 1,296,471  |                                                                                       |   |   | 116,200 |   |
| Natural      gas equivalents (Mcfe)                     |   |                                        | 1,302,215 |   |                                        |   | 1,924,311  |                                                                                       |   |   | 476,500 |   |
|                                                    |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Average      Selling Price*                             |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Oil      (per Bbl)                                      |   | $                                           | 57.55     |   |                                        | $      | 63.36      |                                                                                       |   | $ | 55.38 |   |
| Natural      gas (per Mcf)                              |   |                                        | 4.90      |   |                                        |   | 5.37       |                                                                                       |   |   | 9.62 |   |
| Natural      gas equivalents (per Mcfe)                 |   |                                        | 5.97      |   |                                        |   | 7.07       |                                                                                       |   |   | 9.32 |   |
|                                                    |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Average      cost per Mcfe                              |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Production      and operating costs                     |   |                                        | 1.71      |   |                                        |   | 0.98       |                                                                                       |   |   | 1.43 |   |
| Depreciation,      depletion and amortization           |   |                                        | 3.34      |   |                                        |   | 3.34       |                                                                                       |   |   | 4.24 |   |
|                                                    |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Revenues:                                               |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Oil      and gas sales                                  |   |                                        | 7,772,799 |   |                                        |   | 13,595,265 |                                                                                       |   |   | 4,442,990 |   |
| Oil      and gas price risk management (loss) gain, net |   |                                        | (600,489  | )      |                                        |   | 946,671    |                                                                                       |   |   | (31,322 | ) |
| Total      revenues                                     |   |                                        | 7,172,310 |   |                                        |   | 14,541,936 |                                                                                       |   |   | 4,411,668 |   |
|                                                    |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Operating      costs and expenses:                      |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Production      and operating costs                     |   |                                        | 2,221,417 |   |                                        |   | 1,884,368  |                                                                                       |   |   | 679,519 |   |
| Management      fee                                     |   |                                        | -         |   |                                        |   | -          |                                                                                       |   |   | 606,791 |   |
| Direct      costs - general and administrative          |   |                                        | 53,438    |   |                                        |   | 215,194    |                                                                                       |   |   | 32,405 |   |
| Depreciation,      depletion and amortization           |   |                                        | 4,347,282 |   |                                        |   | 6,432,887  |                                                                                       |   |   | 2,021,701 |   |
| Accretion      of asset retirement obligations          |   |                                        | 17,520    |   |                                        |   | 11,661     |                                                                                       |   |   | 4,060 |   |
| Total      operating costs and expenses                 |   |                                        | 6,639,657 |   |                                        |   | 8,544,110  |                                                                                       |   |   | 3,344,476 |   |
|                                                    |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Income      from operations                             |   |                                        | 532,653   |   |                                        |   | 5,997,826  |                                                                                       |   |   | 1,067,192 |   |
|                                                    |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Interest      income                                    |   |                                        | 85,333    |   |                                        |   | 70,868     |                                                                                       |   |   | 401,492 |   |
|                                                    |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Net      income                                         |   | $                                           | 617,986   |   |                                        | $      | 6,068,694  |                                                                                       |   | $ | 1,468,684 |   |
|                                                    |   |                                        |      |   |                                        |   |       |                                                                                       |   |   |   |   |
| Cash      distributions                                 |   | $                                           | 6,863,144 |   |                                        | $      | 11,922,183 |                                                                                       |   | $ | 780,426 |   |

|   | · | Bbl      – One barrel or 42 U.S. gallons liquidvolume |
|--------|--------|-------------------------------------------------------------|

|   | · | MBbl      – One thousand barrels |
|--------|--------|----------------------------------------|

|   | · | Mcf      – One thousand cubic feet |
|--------|--------|------------------------------------------|

|   | · | MMcf      – One million cubic feet |
|--------|--------|------------------------------------------|

|   | · | Mcfe      – One thousand cubic feet of gas equivalents, based on a ratio of 6 Mcf      for each barrel of oil, which reflects the relative energy      content. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                         |   | 2007   |   |   | 2006   |   |   | 2005     |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|----------|--------|
| Total                        |   | Sales  |   |   | Mcfe   |   |   | per Mcfe |   |   | Sales |   |   | Mcfe |   |   | per Mcfe |   |   | Sales |   |   | Mcfe |   |   | per Mcfe |   |
| Jan-Mar                      |   | $      | 2,433  |   |   |   | 404    |     |   | $ | 6.02 |   |   | $ | 3,769 |   |   |   | 425 |   |   | $ | 8.86 |   |   | $ | - |   |   |   | - |   |   |   |   |
| Apr-Jun                      |   |   | 2,108  |   |   |   | 359    |     |   |   | 5.88 |   |   |   | 3,093 |   |   |   | 371 |   |   |   | 8.33 |   |   |   | - |   |   |   | - |   |   |   |   |
| Jul-Sept                     |   |   | 1,678  |   |   |   | 307    |     |   |   | 5.47 |   |   |   | 3,915 |   |   |   | 637 |   |   |   | 6.14 |   |   |   | 955 |   |   |   | 101 |   |   |   | 9.45 |   |
| Oct-Dec                      |   |   | 1,554  |   |   |   | 232    |     |   |   | 6.68 |   |   |   | 2,818 |   |   |   | 491 |   |   |   | 5.75 |   |   |   | 3,488 |   |   |   | 376 |   |   |   | 9.29 |   |
| Total                        |   | $      | 7,773  |   |   |   | 1,302  |     |   | $ | 5.97 |   |   | $ | 13,595 |   |   |   | 1,924 |   |   | $ | 7.07 |   |   | $ | 4,443 |   |   |   | 477 |   |   | $ | 9.32 |   |
| Change      (Year over year) |   |   | -43    | %      |   |   | -32    | %        |   |   | -16 | % |   |   | 206 | % |   |   | 304 | % |   |   | -24 | % |   |   | - |   |   |   | - |   |   |   | - |   |

|                         |   | 2007   |   |   | 2006   |   |   | 2005    |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| Oil                          |   | Sales  |   |   | Bbl    |   |   | per Bbl |   |   | Sales |   |   | Bbl |   |   | per Bbl |   |   | Sales |   |   | Bbl |   |   | per Bbl |   |
| Jan-Mar                      |   | $      | 681    |   |   |   | 15     |    |   | $ | 45.20 |   |   | $ | 2,405 |   |   |   | 40 |   |   | $ | 60.72 |   |   | $ | - |   |   |   | - |   |   |   |   |
| Apr-Jun                      |   |   | 726    |   |   |   | 13     |    |   |   | 54.44 |   |   |   | 1,764 |   |   |   | 27 |   |   |   | 66.11 |   |   |   | - |   |   |   | - |   |   |   |   |
| Jul-Sept                     |   |   | 730    |   |   |   | 11     |    |   |   | 63.96 |   |   |   | 1,446 |   |   |   | 21 |   |   |   | 69.98 |   |   |   | 777 |   |   |   | 13 |   |   |   | 59.08 |   |
| Oct-Dec                      |   |   | 708    |   |   |   | 10     |    |   |   | 73.52 |   |   |   | 1,015 |   |   |   | 18 |   |   |   | 57.40 |   |   |   | 2,548 |   |   |   | 47 |   |   |   | 54.34 |   |
| Total                        |   | $      | 2,845  |   |   |   | 49     |    |   | $ | 57.55 |   |   | $ | 6,630 |   |   |   | 105 |   |   | $ | 63.36 |   |   | $ | 3,325 |   |   |   | 60 |   |   | $ | 55.38 |   |
| Change      (Year over year) |   |   | -57    | %      |   |   | -53    | %       |   |   | -9 | % |   |   | 99 | % |   |   | 74 | % |   |   | 14 | % |   |   | - |   |   |   | - |   |   |   | - |   |

|                         |   | 2007   |   |   | 2006   |   |   | 2005    |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| Natural Gas                  |   | Sales  |   |   | Mcf    |   |   | per Mcf |   |   | Sales |   |   | Mcf |   |   | per Mcf |   |   | Sales |   |   | Mcf |   |   | per Mcf |   |
| Jan-Mar                      |   | $      | 1,752  |   |   |   | 314    |    |   | $ | 5.58 |   |   | $ | 1,364 |   |   |   | 188 |   |   | $ | 7.27 |   |   | $ | - |   |   |   | - |   |   |   |   |
| Apr-Jun                      |   |   | 1,382  |   |   |   | 279    |    |   |   | 4.96 |   |   |   | 1,329 |   |   |   | 211 |   |   |   | 6.29 |   |   |   | - |   |   |   | - |   |   |   |   |
| Jul-Sept                     |   |   | 948    |   |   |   | 238    |    |   |   | 3.98 |   |   |   | 2,469 |   |   |   | 513 |   |   |   | 4.81 |   |   |   | 178 |   |   |   | 22 |   |   |   | 8.03 |   |
| Oct-Dec                      |   |   | 846    |   |   |   | 175    |    |   |   | 4.84 |   |   |   | 1,803 |   |   |   | 384 |   |   |   | 4.69 |   |   |   | 940 |   |   |   | 94 |   |   |   | 9.99 |   |
| Total                        |   | $      | 4,928  |   |   |   | 1,006  |    |   | $ | 4.90 |   |   | $ | 6,965 |   |   |   | 1,296 |   |   | $ | 5.37 |   |   | $ | 1,118 |   |   |   | 116 |   |   | $ | 9.62 |   |
| Change      (Year over year) |   |   | -29    | %      |   |   | -22    | %       |   |   | -9 | % |   |   | 523 | % |   |   | 1016 | % |   |   | -44 | % |   |   | - |   |   |   | - |   |   |   | - |   |

----

Index

|                                                    |   | Quarter Ended       |     |   |               |   |
|---------------------------------------------------------|--------|---------------------|----------|--------|--------------------|--------|
|                                                    |   | March 31, 2007 |     |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |   | Total |   |
|                                                    |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |
| Realized      gains (losses)                            |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |
| Oil                                                     |   | $                   | (5,880   | )      |               | $      | (6,000 | ) |   | $ | (1,466 | ) |   | $ | (1,809 | ) |   | $ | (15,155 | ) |
| Natural      Gas                                        |   |                | (7,054   | )      |               |   | 118,983 |   |   |   | 192,864 |   |   |   | 189,378 |   |   |   | 494,171 |   |
| Realized      gain (loss)                               |   |                | (12,934  | )      |               |   | 112,983 |   |   |   | 191,398 |   |   |   | 187,569 |   |   |   | 479,016 |   |
| Unrealized      gain (loss)                             |   |                | (445,689 | )      |               |   | 120,423 |   |   |   | (99,587 | ) |   |   | (654,652 | ) |   |   | (1,079,505 | ) |
| Oil      and gas price risk management (loss) gain, net |   | $                   | (458,623 | )      |               | $      | 233,406 |   |   | $ | 91,811 |   |   | $ | (467,083 | ) |   | $ | (600,489 | ) |

|                                                    |   | Quarter Ended       |    |   |               |   |
|---------------------------------------------------------|--------|---------------------|---------|--------|--------------------|--------|
|                                                    |   | March 31, 2006 |    |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |   | Total |   |
|                                                    |   |                |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Realized      gains (losses)                            |   |                |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Oil                                                     |   | $                   | -       |   |               | $      | - |   |   | $ | - |   |   | $ | (4,365 | ) |   | $ | (4,365 | ) |
| Natural      Gas                                        |   |                | 58,002  |   |               |   | 6,379 |   |   |   | 20,485 |   |   |   | 48,906 |   |   |   | 133,772 |   |
| Realized      gain (loss)                               |   |                | 58,002  |   |               |   | 6,379 |   |   |   | 20,485 |   |   |   | 44,541 |   |   |   | 129,407 |   |
| Unrealized      gain (loss)                             |   |                | 58,638  |   |               |   | 84,941 |   |   |   | 629,850 |   |   |   | 43,835 |   |   |   | 817,264 |   |
| Oil      and gas price risk management gain (loss), net |   | $                   | 116,640 |   |               | $      | 91,320 |   |   | $ | 650,335 |   |   | $ | 88,376 |   |   | $ | 946,671 |   |

|                                                    |   | Period    May 18, 2005 |   |   | Quarter Ended           |   |    |                   |   |
|---------------------------------------------------------|--------|----------------------------------|--------|--------|-------------------------|--------|---------|------------------------|--------|
|                                                    |   | to June 30, 2005            |   |   | September 30, 2005 |   |    | December 31, 2005 |   |   | Total |   |
|                                                    |   |                             |   |   |                    |   |    |                   |   |   |   |   |
| Realized      gains (losses)                            |   |                             |   |   |                    |   |    |                   |   |   |   |   |
| Oil                                                     |   |                             | -      |   |                    | $      | (17,759 | )                      |   | $ | (13,563 | ) |   | $ | (31,322 | ) |
| Natural      Gas                                        |   |                             | -      |   |                    |   | -       |                   |   |   | - |   |   |   | - |   |
| Realized      gain (loss)                               |   |                             | -      |   |                    |   | (17,759 | )                      |   |   | (13,563 | ) |   |   | (31,322 | ) |
| Unrealized      gain (loss)                             |   |                             | -      |   |                    |   | (19,935 | )                      |   |   | 19,935 |   |   |   | - |   |
| Oil      and gas price risk management (loss) gain, net |   | $                                | -      |   |                    | $      | (37,694 | )                      |   | $ | 6,372 |   |   | $ | (31,322 | ) |

----

Index

|    |   | 2007            |      |   | 2006   |   |      | 2005     |   |
|---------|--------|-----------------|-----------|--------|--------|--------|-----------|----------|--------|
|    |   | Prod Costs |      |   | Mcfe's |   |      | per Mcfe |   |   | Prod Costs |   |   | Mcfe's |   |   | per Mcfe |   |   | Prod Costs |   |   | Mcfe's |   |   | per Mcfe |   |
| Jan-Mar |   | $               | 537,508   |   |   |   | 404,200   |     |   | $ | 1.33 |   |   | $ | 301,056 |   |   |   | 425,167 |   |   | $ | 0.71 |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
| Apr-Jun |   |            | 460,330   |   |   |   | 358,580   |     |   |   | 1.28 |   |   |   | 373,978 |   |   |   | 371,269 |   |   |   | 1.01 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Jul-Sep |   |            | 528,451   |   |   |   | 306,792   |     |   |   | 1.72 |   |   |   | 686,440 |   |   |   | 637,360 |   |   |   | 1.08 |   |   |   | 156,891 |   |   |   | 101,097 |   |   |   | 1.55 |   |
| Oct-Dec |   |            | 695,128   |   |   |   | 232,643   |     |   |   | 2.99 |   |   |   | 522,894 |   |   |   | 490,515 |   |   |   | 1.07 |   |   |   | 522,628 |   |   |   | 375,403 |   |   |   | 1.39 |   |
| Total   |   | $               | 2,221,417 |   |   |   | 1,302,215 |     |   | $ | 1.71 |   |   | $ | 1,884,368 |   |   |   | 1,924,311 |   |   | $ | 0.98 |   |   | $ | 679,519 |   |   |   | 476,500 |   |   | $ | 1.43 |   |

|    |   | 2007     |      |   | 2006   |   |      | 2005     |   |
|---------|--------|----------|-----------|--------|--------|--------|-----------|----------|--------|
|    |   | DD&A |      |   | Mcfe's |   |      | per Mcfe |   |   | DD&A |   |   | Mcfe's |   |   | per Mcfe |   |   | DD&A |   |   | Mcfe's |   |   | per Mcfe |   |
| Jan-Mar |   | $        | 1,324,622 |   |   |   | 404,200   |     |   | $ | 3.28 |   |   | $ | 1,618,533 |   |   |   | 425,167 |   |   | $ | 3.81 |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
| Apr-Jun |   |     | 1,159,482 |   |   |   | 358,580   |     |   |   | 3.23 |   |   |   | 1,373,460 |   |   |   | 371,269 |   |   |   | 3.70 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Jul-Sep |   |     | 986,232   |   |   |   | 306,792   |     |   |   | 3.21 |   |   |   | 1,856,267 |   |   |   | 637,360 |   |   |   | 2.91 |   |   |   | 358,600 |   |   |   | 101,097 |   |   |   | 3.55 |   |
| Oct-Dec |   |     | 876,946   |   |   |   | 232,643   |     |   |   | 3.77 |   |   |   | 1,584,627 |   |   |   | 490,515 |   |   |   | 3.23 |   |   |   | 1,663,101 |   |   |   | 375,403 |   |   |   | 4.43 |   |
| Total   |   | $        | 4,347,282 |   |   |   | 1,302,215 |     |   | $ | 3.34 |   |   | $ | 6,432,887 |   |   |   | 1,924,311 |   |   | $ | 3.34 |   |   | $ | 2,021,701 |   |   |   | 476,500 |   |   | $ | 4.24 |   |

----

Index

----

Index

|                                                      |   | 2007                              |      |
|-----------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                      |   | Quarter      ended March 31, |      |   | Quarter      ended June 30, |   |   | Quarter      ended September 30, |   |   | Quarter      ended December 31, |   |
|                                                      |   |                              |      |   |   |   |   |   |   |   |   |   |
| Working      capital per financial statement              |   | $                                 | 3,163,533 |   |   | $ | 3,135,209 |   |   | $ | 2,696,853 |   |   | $ | 1,825,105 |   |
| Due      (to) from Managing General Partner - derivatives |   |                              | (371,575  | ) |   |   | (425,842 | ) |   |   | (373,244 | ) |   |   | 262,242 |   |
| Working      capital excluding derivatives                |   | $                                 | 2,791,958 |   |   | $ | 2,709,367 |   |   | $ | 2,323,609 |   |   | $ | 2,087,347 |   |

|                                                      |   | 2006                              |      |
|-----------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                      |   | Quarter      ended March 31, |      |   | Quarter      ended June 30, |   |   | Quarter      ended September 30, |   |   | Quarter      ended December 31, |   |
|                                                      |   |                              |      |   |   |   |   |   |   |   |   |   |
| Working      capital per financial statement              |   | $                                 | 3,943,398 |   |   | $ | 3,449,054 |   |   | $ | 4,653,013 |   |   | $ | 3,829,760 |   |
| Due      (to) from Managing General Partner - derivatives |   |                              | (33,100   | ) |   |   | (114,226 | ) |   |   | (549,140 | ) |   |   | (735,155 | ) |
| Working      capital excluding derivatives                |   | $                                 | 3,910,298 |   |   | $ | 3,334,828 |   |   | $ | 4,103,873 |   |   | $ | 3,094,605 |   |

|                                                      |   | 2005                            |       |   |                                  |   |
|-----------------------------------------------------------|--------|---------------------------------|------------|--------|---------------------------------------|--------|
|                                                      |   | Period      ended June 30, |       |   | Quarter      ended September 30, |   |   | Quarter      ended December 31, |   |
|                                                      |   |                            |       |   |                                  |   |   |   |   |
| Working      capital per financial statement              |   | $                               | 38,325,558 |   |                                  | $      | 17,119,548 |   |   | $ | 3,320,810 |   |
| Due      (to) from Managing General Partner - derivatives |   |                            | -          |   |                                  |   | 19,935 |   |   |   | - |   |
| Working      capital excluding derivatives                |   | $                               | 38,325,558 |   |                                  | $      | 17,139,483 |   |   | $ | 3,320,810 |   |

|    |   |   | Managing      General Partner Distributions |      |   | Investor      Partners Distributions |   |      | Total      Distributions |   |
|---------|--------|--------|---------------------------------------------|-----------|--------|--------------------------------------|--------|-----------|--------------------------|--------|
|    |   |   |                                        |      |   |                                 |   |      |                     |   |
| 2007    |   |   |                                        |      |   |                                 |   |      |                     |   |
| Jan-Mar |   |   | $                                           | 426,538   |   |                                 | $      | 1,706,155 |                     |   | $ | 2,132,693 |   |
| Apr-Jun |   |   |                                        | 341,308   |   |                                 |   | 1,420,539 |                     |   |   | 1,761,847 |   |
| Jul-Sep |   |   |                                        | 337,918   |   |                                 |   | 1,351,675 |                     |   |   | 1,689,593 |   |
| Oct-Dec |   |   |                                        | 255,801   |   |                                 |   | 1,023,210 |                     |   |   | 1,279,011 |   |
|    |   |   | $                                           | 1,361,565 |   |                                 | $      | 5,501,579 |                     |   | $ | 6,863,144 |   |
|    |   |   |                                        |      |   |                                 |   |      |                     |   |   |   |   |
| 2006    |   |   |                                        |      |   |                                 |   |      |                     |   |   |   |   |
| Jan-Mar |   |   | $                                           | 590,344   |   |                                 | $      | 2,361,379 |                     |   | $ | 2,951,723 |   |
| Apr-Jun |   |   |                                        | 663,295   |   |                                 |   | 2,653,186 |                     |   |   | 3,316,481 |   |
| Jul-Sep |   |   |                                        | 474,916   |   |                                 |   | 1,899,666 |                     |   |   | 2,374,582 |   |
| Oct-Dec |   |   |                                        | 655,880   |   |                                 |   | 2,623,517 |                     |   |   | 3,279,397 |   |
|    |   |   | $                                           | 2,384,435 |   |                                 | $      | 9,537,748 |                     |   | $ | 11,922,183 |   |
|    |   |   |                                        |      |   |                                 |   |      |                     |   |   |   |   |
| 2005    |   |   |                                        |      |   |                                 |   |      |                     |   |   |   |   |
| Jan-Mar |   |   | $                                           | -         |   |                                 | $      | -         |                     |   | $ | - |   |
| Apr-Jun |   |   |                                        | -         |   |                                 |   | -         |                     |   |   | - |   |
| Jul-Sep |   |   |                                        | -         |   |                                 |   | -         |                     |   |   | - |   |
| Oct-Dec |   |   |                                        | 156,085   |   |                                 |   | 624,341   |                     |   |   | 780,426 |   |
|    |   |   | $                                           | 156,085   |   |                                 | $      | 624,341   |                     |   | $ | 780,426 |   |

----

Index

|   | · | Decrease      in oil and gas sale revenues of 42.8%, $0.4 million increase in realized      oil and gas price risk management gain, as well as an increase      in production and operating cost of 17.9% partially offset by a      decrease in direct cost – general and administrative of $0.2      million. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Due      from (to) Managing General Partner decreased due to the Partnership’s      share of reimbursement cost paid by the Managing General      Partner. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increase      in oil and gas sale revenues of 206.0% partially offset by a increase in      production and operating cost of 177% and a decrease in management fee of      $0.6 million as well as an increase in direct cost – general and      administrative of $0.2 million. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Due      from (to) Managing General Partner decreased due to the Partnership’s      share of reimbursement cost paid by the Managing General      Partner. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   | 2007                              |      |
|-------------------------------------------|--------|-----------------------------------|-----------|
|                                      |   | Quarter      ended March 31, |      |   | Quarter      ended June 30, |   |   | Quarter      ended September 30, |   |   | Quarter      ended December 31, |   |
|                                      |   |                              |      |   |   |   |   |   |   |   |   |   |
| Cash      flows from operating activities |   | $                                 | 1,944,283 |   |   | $ | 1,773,029 |   |   | $ | 1,699,013 |   |   | $ | 1,279,303 |   |

|                                      |   | 2006                              |      |
|-------------------------------------------|--------|-----------------------------------|-----------|
|                                      |   | Quarter      ended March 31, |      |   | Quarter      ended June 30, |   |   | Quarter      ended September 30, |   |   | Quarter      ended December 31, |   |
|                                      |   |                              |      |   |   |   |   |   |   |   |   |   |
| Cash      flows from operating activities |   | $                                 | 2,967,593 |   |   | $ | 3,320,931 |   |   | $ | 2,375,472 |   |   | $ | 3,308,264 |   |

|                                      |   | 2005                                     |     |   |                                  |   |
|-------------------------------------------|--------|------------------------------------------|----------|--------|---------------------------------------|--------|
|                                      |   | Period      May 18 to June 30, |     |   | Quarter      ended September 30, |   |   | Quarter      ended December 31, |   |
|                                      |   |                                     |     |   |                                  |   |   |   |   |
| Cash      flows from operating activities |   | $                                        | (600,610 | )      |                                  | $      | 261,454 |   |   | $ | 914,412 |   |

----

Index

|                                                         |   | Payments due by period |    |
|--------------------------------------------------------------|--------|------------------------|---------|
| Contractual      Obligations and Contingent      Commitments |   | Total                  |    |   | Less      than 1 year |   |   | 1-3 years |   |   | 3-5 years |   |
|                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |
| December 31, 2007                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Derivative      contracts                                    |   | $                      | 262,242 |   |   | $ | 262,242 |   |   | $ | - |   |   | $ | - |   |
| Asset      Retirement Obligations                            |   |                   | 382,922 |   |   |   | - |   |   |   | - |   |   |   | 382,922 |   |
|                                                         |   | $                      | 645,164 |   |   | $ | 262,242 |   |   | $ | - |   |   | $ | 382,922 |   |
|                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2006                                            |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset      Retirement Obligations                            |   | $                      | 365,402 |   |   | $ | - |   |   | $ | - |   |   | $ | 365,402 |   |
|                                                         |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2005                                            |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset      Retirement Obligations                            |   | $                      | 285,911 |   |   | $ | - |   |   | $ | - |   |   | $ | 285,911 |   |

----

Index

----

Index

Item

----

Index

|   | · | For      swap instruments, the PDC as Managing General Partner, receives a fixed-      price for the hedged commodity and pays a floating market price to the      counterparty. The fixed-price payment and the floating-price payment are      netted, resulting in a net amount due to or from the      counterparty. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Collars      contain a fixed-floor price (put) and ceiling price (call). If the market      price exceeds the ceiling strike price or falls below the fixed floor      strike price, PDC, as Managing General Partner, receives the fixed-floor      price and pays the market price. If the market price is between the      ceiling and the floor strike price, no payments are due from either      party. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Floors      contained a floor price (put) whereby PDC, as Managing General Partner,      received from the counterparty, the floor price if the commodity market      price fell below the floor strike price, but received no payment when the      commodity market price exceeded the floorprice. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Average      index closing price                         |   | Year Ended December 31,      2007 |   |   | Year Ended December 31,      2006 |   |   | Period Ended December 31,      2005 |   |
|----------------------------------------------------------|--------|---------------------------------------------|--------|--------|---------------------------------------------|--------|--------|-----------------------------------------------|--------|
|     Natural      gas (per Mcf) - CIG |   | $                                           | 3.97   |   |                                        | $      | 5.63   |                                          |   | $ | 6.95 |   |
|     Oil      (per Bbl) - NYMEX       |   |                                        | 69.79  |   |                                        |   | 64.73  |                                          |   |   | 55.34 |   |
|                                                     |   |                                        |   |   |                                        |   |   |                                          |   |   |   |   |
| Average      sales price                                 |   |                                        |   |   |                                        |   |   |                                          |   |   |   |   |
| Natural      gas                                         |   |                                        | 4.90   |   |                                        |   | 5.37   |                                          |   |   | 9.62 |   |
| Oil                                                      |   | $                                           | 57.55  |   |                                        | $      | 63.36  |                                          |   | $ | 55.38 |   |

----

Index

|                     |   |      |   |                           |   | Floors                                   |   |   | Ceilings |   |   | Swaps (Fixed Prices)                      |   |
|--------------------------|--------|-----------|--------|--------------------------------|--------|------------------------------------------|--------|--------|----------|--------|--------|-------------------------------------------|--------|
| Commodity/ Index/ Area   |   | Month Set |   | Month                          |   | Net Monthly Quantity(Gas -MMbtuOil-Bbls) |   |   | Price    |   |   | Net Monthly Quantity(Gas -MMbtuOil -Bbls) |   |   | Price |   |   | Net Monthly Quantity (Gas-MMbtu Oil      -Bbls) |   |   | Price |   |
| Natural      Gas - (CIG) |   |      |   |                           |   |                                     |   |   |     |   |   |                                      |   |   |   |   |   |   |   |   |
| Piceance      Basin      |   |      |   |                           |   |                                     |   |   |     |   |   |                                      |   |   |   |   |   |   |   |   |
|                     |   | Apr-08    |   | Feb      09 - Mar 09           |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 14,343 |   |   | $ | 7.76 |   |
|                     |   | Jul-08    |   | Feb 09      - Mar 09      |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 8,555 |   |   |   | 8.52 |   |
|                     |   | Feb-08    |   | Feb 09 -      Mar 09 |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 8,555 |   |   |   | 8.18 |   |
|                     |   | Jan-08    |   | Apr      09 - Oct 09           |   |                                     | 15,519 |   |     | $      | 5.75   |                                      |   |   | 15,519 |   |   | $ | 8.75 |   |   |   | - |   |   |   | - |   |
|                     |   | Mar-08    |   | Apr      09 - Oct 09           |   |                                     | 15,247 |   |     |   | 5.75   |                                      |   |   | 15,247 |   |   |   | 9.05 |   |   |   | - |   |   |   | - |   |
|                     |   | Jul-08    |   | Nov      09 - Mar 10           |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 11,634 |   |   |   | 9.20 |   |
|                     |   | Jul-08    |   | Nov      09 - Mar 10           |   |                                     | 16,546 |   |     |   | 7.50   |                                      |   |   | 16,546 |   |   |   | 11.40 |   |   |   | - |   |   |   | - |   |
|                     |   | Nov-08    |   | Nov      10 - Mar 11           |   |                                     | 10,749 |   |     |   | 4.75   |                                      |   |   | 10,749 |   |   |   | 9.45 |   |   |   |   |   |   |   |   |   |
| Wattenberg      Field    |   |      |   |                           |   |                                     |   |   |     |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Apr-08    |   | Feb 09      - Mar 09      |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 2,535 |   |   |   | 7.76 |   |
|                     |   | Jul-08    |   | Feb 09      - Mar 09      |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 1,498 |   |   |   | 8.52 |   |
|                     |   | Feb-08    |   | Feb 09      - Mar 09      |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 1,498 |   |   |   | 8.18 |   |
|                     |   | Jan-08    |   | Apr      09 - Oct 09           |   |                                     | 2,744  |   |     |   | 5.75   |                                      |   |   | 2,744 |   |   |   | 8.75 |   |   |   | - |   |   |   | - |   |
|                     |   | Mar-08    |   | Apr      09 - Oct 09           |   |                                     | 2,495  |   |     |   | 5.75   |                                      |   |   | 2,495 |   |   |   | 9.05 |   |   |   | - |   |   |   | - |   |
|                     |   | Jul-08    |   | Nov      09 - Mar 10           |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 1,996 |   |   |   | 9.20 |   |
|                     |   | Jul-08    |   | Nov      09 - Mar 10           |   |                                     | 2,874  |   |     |   | 7.50   |                                      |   |   | 2,874 |   |   |   | 11.40 |   |   |   | - |   |   |   | - |   |
|                     |   | Nov-08    |   | Nov      10 - Mar 11           |   |                                     | 2,336  |   |     | $      | 4.75   |                                      |   |   | 2,336 |   |   | $ | 9.45 |   |   |   |   |   |   |   |   |   |
| Oil      - NYMEX         |   |      |   |                           |   |                                     |   |   |     |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg      Field    |   |      |   |                           |   |                                     |   |   |     |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Jan-08    |   | Feb 09      - Dec 09      |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 711 |   |   |   | 84.90 |   |
|                     |   | Jan-08    |   | Feb 09      - Dec 09      |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 711 |   |   |   | 85.40 |   |
|                     |   | May-08    |   | Feb 09      - Dec 09      |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 284 |   |   |   | 117.35 |   |
|                     |   | May-08    |   | Jan      10 - Dec 10           |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 725 |   |   |   | 92.74 |   |
|                     |   | May-08    |   | Jan      10 - Dec 10           |   |                                     | -      |   |     |   | -      |                                      |   |   | - |   |   |   | - |   |   |   | 725 |   |   | $ | 93.17 |   |

----

Index

|                     |   |      |   |                 |   | Floors                                                         |   |   | Ceilings |   |   | Swaps (Fixed Prices)                                           |   |
|--------------------------|--------|-----------|--------|----------------------|--------|----------------------------------------------------------------|--------|--------|----------|--------|--------|----------------------------------------------------------------|--------|
| Commodity/ Index/ Area   |   | Month Set |   | Month                |   | Net Monthly Quantity(Gas-       MMbtuOil -Bbls) |   |   | Price    |   |   | Net Monthly Quantity(Gas-       MMbtuOil -Bbls) |   |   | Price |   |   | Net Monthly Quantity(Gas-       MMbtuOil -Bbls) |   |   | Price |   |
| Natural      Gas - (CIG) |   |      |   |                 |   |                                                           |   |   |     |   |   |                                                           |   |   |   |   |   |   |   |   |
| Piceance      Basin      |   |      |   |                 |   |                                                           |   |   |     |   |   |                                                           |   |   |   |   |   |   |   |   |
|                     |   | Dec-06    |   | Jan      08 - Mar 08 |   |                                                           | 12,321 |   |     | $      | 5.25   |                                                           |   |   | - |   |   | $ | - |   |   |   | - |   |   |   | - |   |
|                     |   | Jan-07    |   | Jan      08 - Mar 08 |   |                                                           | 12,321 |   |     |   | 5.25   |                                                           |   |   | 12,321 |   |   |   | 9.80 |   |   |   | - |   |   |   | - |   |
|                     |   | May-07    |   | Apr      08 - Oct 08 |   |                                                           | 24,318 |   |     |   | 5.50   |                                                           |   |   | 24,318 |   |   |   | 10.35 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |                 |   |                                                           |   |   |     |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg      Field    |   |      |   |                 |   |                                                           |   |   |     |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Jan-07    |   | Jan      08 - Mar 08 |   |                                                           | 3,049  |   |     |   | 5.25   |                                                           |   |   | 3,049.07 |   |   |   | 9.80 |   |   |   | - |   |   |   | - |   |
|                     |   | May-07    |   | Apr      08 - Oct 08 |   |                                                           | 7,318  |   |     | $      | 5.50   |                                                           |   |   | 7,318 |   |   | $ | 10.35 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |                 |   |                                                           |   |   |     |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil      - NYMEX         |   |      |   |                 |   |                                                           |   |   |     |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg      Field    |   |      |   |                 |   |                                                           |   |   |     |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Oct-07    |   | Jan      08 - Dec 08 |   |                                                           | -      |   |     |   | -      |                                                           |   |   | - |   |   |   | - |   |   |   | 3,027 |   |   | $ | 84.20 |   |

|                     |   |      |   |                 |   | Floors                                        |   |   |   |   |   | Ceilings                                      |   |   |   |   |
|--------------------------|--------|-----------|--------|----------------------|--------|-----------------------------------------------|--------|--------|--------|--------|--------|-----------------------------------------------|--------|--------|--------|--------|
| Commodity/ Index/ Area   |   | Month Set |   | Month                |   | Net Monthly Quantity(Gas-MMbtuOil -Bbls) |   |   | Price  |   |   | Net Monthly Quantity(Gas-MMbtuOil -Bbls) |   |   | Price  |   |
| Natural      Gas - (CIG) |   |      |   |                 |   |                                          |   |   |   |   |   |                                          |   |   |
| Piceance      Basin      |   |      |   |                 |   |                                          |   |   |   |   |   |                                          |   |   |
|                     |   | Jul-05    |   | Jan      07 - Mar 07 |   |                                          | 15,374 |   |   | $      | 6.00   |                                          |   |   | 7,687  |   |   | $ | 8.40 |   |
|                     |   | Feb-06    |   | Jan      07 - Mar 07 |   |                                          | 32,945 |   |   |   | 6.50   |                                          |   |   | -      |   |   |   | - |   |
|                     |   | Feb-06    |   | Apr      07 - Oct 07 |   |                                          | 24,159 |   |   |   | 5.50   |                                          |   |   | -      |   |   |   | - |   |
|                     |   | Sep-06    |   | Jan      07 - Mar 07 |   |                                          | 58,202 |   |   |   | 4.00   |                                          |   |   | -      |   |   |   | - |   |
|                     |   | Sep-06    |   | Apr      07 - Oct 07 |   |                                          | 82,361 |   |   |   | 4.50   |                                          |   |   | -      |   |   |   | - |   |
|                     |   | Dec-06    |   | Nov      07 - Mar 08 |   |                                          | 41,730 |   |   |   | 5.25   |                                          |   |   | -      |   |   |   | - |   |
|                     |   |      |   |                 |   |                                          |   |   |   |   |   |                                          |   |   |   |   |   |   |   |   |
| Oil      - NYMEX         |   |      |   |                 |   |                                          |   |   |   |   |   |                                          |   |   |   |   |   |   |
| Wattenberg      Field    |   |      |   |                 |   |                                          |   |   |   |   |   |                                          |   |   |   |   |   |   |
|                     |   | Sep-06    |   | Jan      07 - Oct 07 |   |                                          | 2,149  |   |   | $      | 50.00  |                                          |   |   | -      |   |   |   | - |   |

----

Index

Item 

Item

|  | 1. | The      following material weaknesses in internal control over financial reporting      were identified related to the period ended December 31, 2005, and the      subsequent period through December 28, 2007, as  follows: |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | The      Registrant did not have effective policies and procedures, or personnel      with sufficient technical expertise to properly account for derivative      transactions in accordance with generally accepted accounting principles.      Specifically, the Registrant's policies and procedures relating to      derivatives transactions were not designed effectively such that each of      the requirements for hedge accounting were evaluated appropriately with      respect to the Registrant's commodity based  derivatives. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | The      Registrant did not have effective policies and procedures, or personnel      with sufficient technical expertise to ensure compliance with appropriate      accounting principles for its oil and gas properties. Specifically, the      Registrant's policies and procedures were not designed effectively to      ensure that the calculation of depreciation and depletion and the      determination of impairments were performed in accordance with the      applicable authoritative accounting guidance. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|  | · | The      Registrant did not have effective policies and procedures, or personnel      with sufficient technical expertise to ensure that its accounting for      asset retirement obligations complied with generally accepted accounting      principles. Specifically, the Registrant's policies and procedures      regarding the estimate of the fair value of the asset retirement      obligations were not designed effectively to ensure that it was estimated      in accordance with SFAS No. 143, Asset Retirement    Obligations. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | The      Registrant did not have effective policies and procedures to ensure the      timely reconciliation, review and adjustment of significant balance sheet      and income statement accounts, which resulted in the identification of      material misstatements in certain significant balance sheet and income      statement accounts during the Registrant's closing  process. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | In      connection with KPMG's audit of the Managing General Partner's 2006      financial statements, the Managing General Partner identified that the      Managing General Partner had over-withheld production taxes from revenue      distributions made to its 75 drilling partnerships' limited partners,      including the limited partners of the Registrant. PDC management      determined that the misstatement for the over-withholding of production      taxes was immaterial for restatement of the Partnership's 2005 financial      statements. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item

----

Index

|   | (a) | Evaluation of      Disclosure Controls andProcedures |
|--------|-----|------------------------------------------------------|

|   | (b) | Management’s Report on      Internal Control Over FinancialReporting |
|--------|-----|----------------------------------------------------------------------------|

|   | · | Pertain      to the maintenance of records that in reasonable detail accurately and      fairly reflect the transactions and dispositions of the assets of the      issuer; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with accounting      principles generally accepted in the United States of America and that      receipts and expenditures of the issuer are being made only in accordance      with authorizations of management and directors of the issuer;      and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of the issuer’s assets that      could have a material effect on the financial statements of the      issuer. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | The      support for the Partnership’s general ledger depends in part on the      effectiveness of controls of the Managing General Partner’s      spreadsheets.  The overall ineffectiveness of the Managing      General Partner's spreadsheet controls could have a material effect on the      Partnership’s financial statements.  The Partnership did not      maintain effective controls to ensure the completeness, accuracy, and      validity of key financial statement spreadsheets generated by the Managing      General Partner.  These spreadsheets are utilized by the      Partnership to support significant balance sheet and income statement      accounts. This material weakness has not been  remediated. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      support for the Partnership’s derivative calculations depends in part on      the effectiveness of controls of the Managing General Partner’s      process.  The overall ineffectiveness of the Managing General      Partner's derivative controls could have a material effect on the      Partnership’s financial statements.  The Partnership did not      maintain effective controls to ensure that the Managing General Partner      had policies and procedures, or personnel with sufficient technical      expertise to record derivative activities in accordance with generally      accepted accounting principles. This material weakness has not been      remediated. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | For      the transactions that are directly related to and processed by the      Partnership, the Partnership failed to maintain sufficient documentation      to adequately assess the operating effectiveness of internal control over      reporting.  More specifically, the Partnership’s financial close      and reporting narrative failed to adequately describe the process,      identify key controls and assess segregation of duties. This material      weakness has not been remediated. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Partnership did not have effective policies and procedures, or personnel      with sufficient technical expertise to ensure compliance with appropriate      accounting principles for its oil and gas properties. Specifically, the      Partnership’s policies and procedures were not designed effectively to      ensure that the calculation of depreciation and depletion and the      determination of impairments were performed in accordance with the      applicable authoritative accounting guidance. This material weakness was      remediated as of December 31,2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Partnership did not have effective policies and procedures, or personnel      with sufficient technical expertise to ensure that its accounting for      asset retirement obligations complied with generally accepted accounting      principles. Specifically, the Partnership’s policies and procedures      regarding the estimate of the fair value of the assets retirement      obligations were not designed effectively to ensure that it was estimated      in accordance with SFAS No. 143, Asset Retirement Obligations. This      material weakness was remediated as of December 31,      2006. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      Partnership did not have effective policies and procedures to ensure the      timely reconciliation, review and adjustment of significant balance sheet      and income statement accounts, which resulted in the identification of      material misstatements in certain significant balance sheet and income      statement accounts during the Partnership’s closing process. This material      weakness was remediated as of December 31,  2007. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Changes in Internal      Control Over FinancialReporting |
|--------|-----|----------------------------------------------------------|

|   | · | During      the first quarter of 2008, the Managing General Partner implemented the      general ledger, accounts receivable, cash receipts, revenue, financial      reporting, and joint interest billing modules as part of a new broader      financial system.  The Managing General Partner had planned to      implement a Partnership distribution module in 2008, however, the Managing      General Partner currently does not expect this module to be in place until      2009.  The new financial system will enhance operating      efficiencies and provide more effective management of Partnership business      operations and processes.  The Managing General Partner believes      the phased-in implementation approach it is taking reduces the risks      associated with the new financial system implementation. The Managing      General Partner has taken the necessary steps to monitor and maintain      appropriate internal controls during this period of      change.  These steps include documenting all new business      process changes related to the new financial system; testing all new      business processes on the new financial  system; and conducting      training related to the new business processes and to the new financial      system software.  The Managing General Partner expects the      implementation of the new financial system will strengthen the overall      systems of internal controls due to enhanced automation and integration of      related processes.  The Managing General Partner continues to      modify the design and documentation of internal control processes and      procedures related to the new financial system to supplement and      complement existing internal controls over financial      reporting.  The system changes were developed to integrate      systems and consolidate information, and were not undertaken in response      to any actual or perceived deficiencies in the Partnership's internal      control over financial reporting.  Testing of the controls      related to these new systems is ongoing and is included in the scope of      the Managing General Partner's assessment of the Partnership's internal      control over financial reporting for2008. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | During      the third quarter of 2008, the Managing General Partner improved controls      over certain key financial statement spreadsheets that support all      significant balance sheet and income statement      accounts.  Specifically, the Managing General Partner enhanced      the spreadsheet policy to provide additional clarification and guidance      with regard to risk assessment and enforced controls over:  1)      the security and integrity of the data used in the various spreadsheets,      2) access to the spreadsheets, 3) changes to spreadsheet functionality and      the related approval process and documentation and 4) increased      management’s review of thespreadsheets. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During      the third quarter of 2008, in addition to accredited derivative training      attended by key personnel, the Managing General Partner created and      documented a desktop procedure to:  1) ensure the completeness      and accuracy of the Managing General Partner’s derivative activities and      2) supplement key controls previously existing in the      process.  Further, the desktop procedure provides for a more      robust review of the Managing General Partner’s derivative      process.  This procedure will continue to be enhanced throughout      the fourth quarter of 2008. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

Item 

Ite

----

Index

| Name                         | Age    | Positions      andOffices Held                                 | DirectorSince | DirectorshipTerm Expires |
|------------------------------|--------|----------------------------------------------------------------|---------------|--------------------------|
|                         |   |                                                           |          |                     |
| Richard      W. McCullough   | 56     | Chairman,      Chief Executive Officer, President and Director | 2007          | 2010                     |
|                         |   |                                                           |          |                     |
| Gysle      R. Shellum        | 56     | Chief      Financial Officer                                   | -             | -                        |
|                         |   |                                                           |          |                     |
| Eric      R. Stearns         | 50     | Executive      Vice President                                  | -             | -                        |
|                         |   |                                                           |          |                     |
| Darwin      L. Stump         | 53     | Chief      Accounting Officer                                  | -             | -                        |
|                         |   |                                                           |          |                     |
| Daniel      W. Amidon        | 47     | General      Counsel and Secretary                             | -             | -                        |
|                         |   |                                                           |          |                     |
| Barton      R. Brookman, Jr. | 46     | Senior      Vice President Exploration and Production          | -             | -                        |
|                         |   |                                                           |          |                     |
| Steven      R. Williams      | 57     | Director                                                       | 1983          | 2009                     |
|                         |   |                                                           |          |                     |
| Vincent      F. D'Annunzio   | 56     | Director                                                       | 1989          | 2010                     |
|                         |   |                                                           |          |                     |
| Jeffrey      C. Swoveland    | 53     | Director                                                       | 1991          | 2011                     |
|                         |   |                                                           |          |                     |
| Kimberly      Luff Wakim     | 50     | Director                                                       | 2003          | 2009                     |
|                         |   |                                                           |          |                     |
| David      C. Parke          | 41     | Director                                                       | 2003          | 2011                     |
|                         |   |                                                           |          |                     |
| Anthony      J. Crisafio     | 55     | Director                                                       | 2006          | 2009                     |
|                         |   |                                                           |          |                     |
| Joseph      E. Casabona      | 64     | Director                                                       | 2007          | 2011                     |
|                         |   |                                                           |          |                     |
| Larry      F. Mazza          | 47     |  Director                                                 | 2007          | 2010                     |

----

Index

----

Index

Item 11

----

Index

| Item 12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters |
|----------|----------------------------------------------------------------------------------------------------------|

tem

----

Index

m 

tem

| (a) | The      index to Financial Statements is located on page  F-1. |
|-----|-----------------------------------------------------------------|

| (b) | Exhibits. |
|-----|-----------|

|   | Exhibit      No. | Description |
|--------|------------------|-------------|

|   | 3.1 | Form      of Limited Partnership Agreement (incorporated by reference to Appendix A      to Post-Effective Amendment No. 2 to Form S-1, SEC File No. 333-111260,      and Rule 424 final prospectus, dated May 25, 2004, of PDC 2004-2006      Drilling Program, filed with the SEC on May 21,  2004). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Certificate      of limited partnership which reflects the organization of the Partnership      under West Virginia law, filedherewith. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Drilling      and operating agreement between PDC as Managing General Partner of the      Partnership, filed herewith. |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Form      of assignment of leases to the Partnership, filed  herewith. |
|--------|------|------------------------------------------------------------------------|

|   | 10.3 | Audited      Consolidated Financial Statements for the year ended December 31, 2007 of      Petroleum Development Corporation and its subsidiaries, as Managing      General Partner of the Partnership (incorporated by reference to PDC’s      Annual Report on Form 10-K, SEC file No. 000-07246, filed on March 20,      2008). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | 10.4 | Gas      Purchase and Processing Agreement between Duke Energy Field Services,      Inc.; United States Exploration, Inc.; and Petroleum Development      Corporation, dated October 28, 1999 (incorporated by reference to Exhibit      10.3 of Rockies Region 2007 Limited Partnership’s Form 10/A registration      statement filed by PDC as Managing General Partner, on August 6,      2008). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | Gas      Purchase and Processing Agreement between Natural Gas Associates, a      Colorado partnership, and Aceite Energy Corporation, Walker Exploratory      Program 1982-A Limited and Creek Cattle Company, dated October 14, 1983      (incorporated by reference to Exhibit 10.4 of Rockies Region 2007 Limited      Partnership’s Form 10/A registration statement filed by PDC as Managing      General Partner, on August 6,2008). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Gas      Purchase and Processing Agreement between Natural Gas Associates, a      Colorado partnership, and SHF Partnership, a Colorado general partnership,      Trailblazer Oil and Gas, Inc. Alfa Resources, Inc., Pulsar Oil and Gas,      Inc., Overthrust Oil Royalty Corporation, Corvette Petroleum Ltd., Robert      Lanari, an individual, and Toby A Martinez, an individual, dated September      21, 1983 (incorporated by reference to Exhibit 10.5 of Rockies Region 2007      Limited Partnership’s Form 10/A registration statement filed by PDC as      Managing General Partner, on August 6,2008). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | Domestic      Crude Oil Purchase Agreement with ConocoPhillips Company, dated January 1,      1993, as amended by agreements with Teppco Crude Oil, LLC dated August 2,      2007; September 24, 2007; October 17, 2007; January 7, 2008; January 15,      2008; and April 17, 2008 (incorporated by reference to Exhibit 10.6 of      Rockies Region 2007 Limited Partnership’s Form 10/A registration statement      filed by PDC as Managing General Partner, on August 6,    2008). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | Gas      Purchase Agreement between Williams Production RMT Company, Riley Natural      Gas Company and Petroleum Development Corporation, dated as of June 1,      2006 (incorporated by reference to Exhibit 10.7 of Rockies Region 2007      Limited Partnership’s Form 10/A registration statement filed by PDC as      Managing General Partner, on August 6,2008). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.1 | Consent      of Ryder Scott Company, L.P., Petroleum Consultants, filed      herewith. |
|--------|------|----------------------------------------------------------------------------------------|

|   | 23.2 | Consent      of Wright & Company, Inc., Petroleum Consultants, filed      herewith. |
|--------|------|-----------------------------------------------------------------------------------------|

|   | 31.1 | Rule      13a-14(a)/15d-14(c) Certification of Chief Executive Officer of Petroleum      Development Corporation, the Managing General Partner of the      Partnership. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Rule      13a-14(a)/15d-14(c) Certification of Chief Financial Officer of Petroleum      Development Corporation, the Managing General Partner of the      Partnership. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Title      18 U.S.C. Section 1350 (Section 906 of Sarbanes-Oxley Act of 2002)      Certification by Chief Executive Officer and Chief Financial Officer of      Petroleum Development Corporation the Managing General Partner of the      Partnership. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Title      18 U.S.C. Section 1350 (Section 906 of Sarbanes-Oxley Act of 2002)      Certification by Chief Financial Officer of Petroleum Development      Corporation the Managing General Partner of the    Partnership. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

SIGN

| Signature                                          | Title                                           | Date                   |
|----------------------------------------------------|-------------------------------------------------|------------------------|
|                                               |                                            |                   |
| /s/ Richard W. McCullough                          | Chairman      and Chief Executive Officer       | February      25, 2009 |
|     Richard W.      McCullough | Petroleum      Development Corporation          |                   |
|                                               | Managing      General Partner of the Registrant |                   |
|                                               | (Principal      executive officer)              |                   |
|                                               |                                            |                   |
| /s/ Gysle R. Shellum                               | Chief      Financial Officer                    | February      25, 2009 |
|     Gysle R.      Shellum      | Petroleum      Development Corporation,         |                   |
|                                               | Managing      General Partner of the Registrant |                   |
|                                               | (Principal      financial officer)              |                   |
|                                               |                                            |                   |
| /s/ Darwin L. Stump                                | Chief      Accounting Officer                   | February      25, 2009 |
|     Darwin L.      Stump       | Petroleum      Development Corporation          |                   |
|                                               | Managing      General Partner of the Registrant |                   |
|                                               | (Principal      accounting officer)             |                   |
|                                               |                                            |                   |
| /s/ Steven R. Williams                             | Director                                        | February      25, 2009 |
|     Steven R.      Williams    | Petroleum      Development Corporation          |                   |
|                                               | Managing      General Partner of the Registrant |                   |
|                                               |                                            |                   |
| /s/ Anthony J. Crisafio                            | Director                                        | February      25, 2009 |
|     Anthony J.      Crisafio   | Petroleum      Development Corporation          |                   |
|                                               | Managing      General Partner of the Registrant |                   |
|                                               |                                            |                   |
| /s/ Jeffrey C. Swoveland                           | Director                                        | February      25, 2009 |
|     Jeffrey C.      Swoveland  | Petroleum      Development Corporation          |                   |
|                                               | Managing      General Partner of the Registrant |                   |
|                                               |                                            |                   |
| /s/ Joseph E. Casabona                             | Director                                        | February      25, 2009 |
|     Joseph E.      Casabona    | Petroleum      Development Corporation          |                   |
|                                               | Managing      General Partner of the Registrant |                   |

----

Index

PDC 2005

|                                                                                                                                                                          |           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
| Report      of Independent Registered Public Accounting Firms                                                                                                                 | F-2,      F-2a |
|                                                                                                                                                                          |           |
| Balance      Sheets – December 31, 2007, 2006 and 2005                                                                                                                  | F-3            |
|                                                                                                                                                                          |           |
| Statements      of Operations – For the Years Ended December 31, 2007 and 2006 and the      Period from May 18, 2005 (date of inception) to December 31,      2005      | F-4            |
|                                                                                                                                                                          |           |
| Statements      of Partners' Equity –For the Years Ended December 31, 2007 and 2006 and      the Period from May 18, 2005 (date of inception) to December 31,      2005 | F-5            |
|                                                                                                                                                                          |           |
| Statements of Cash Flows – For      the Years Ended December 31, 2007 and 2006 and the Period from May 18,      2005 (date of inception) to December 31, 2005           | F-6            |
|                                                                                                                                                                          |           |
| Notes      to Financial Statements                                                                                                                                            | F-7            |
|                                                                                                                                                                          |           |
| Supplemental      Oil and Gas Information (unaudited)                                                                                                                         | F-24           |
|                                                                                                                                                                          |           |
| Unaudited      Condensed Quarterly Financial Statements                                                                                                                       |           |
|                                                                                                                                                                          |           |
| Balance      Sheets - 2007                                                                                                                                                    | F-28           |
| Balance      Sheets - 2006                                                                                                                                                    | F-29           |
| Balance      Sheets - 2005                                                                                                                                                    | F-30           |
|                                                                                                                                                                          |           |
| Statements      of Operations - 2007                                                                                                                                          | F-31           |
| Statements      of Operations - 2006                                                                                                                                          | F-32           |
| Statements      of Operations - 2005                                                                                                                                          | F-33           |
|                                                                                                                                                                          |           |
| Statements      of Cash Flows - 2007                                                                                                                                          | F-34           |
| Statements      of Cash Flows - 2006                                                                                                                                          | F-35           |
| Statements      of Cash Flows - 2005                                                                                                                                          | F-36           |
|                                                                                                                                                                          |           |
| Notes      to Unaudited Condensed Quarterly Financial Statements                                                                                                              | F-37           |

----

Index

----

Index

----

Index

| Assets                                                         |   | 2007   |        |   | 2006   |   |       | 2005   |   |
|----------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
|                                                           |   |   |        |   |   |   |       |   |   |
| Current      assets:                                           |   |   |        |   |   |   |       |   |   |
| Cash      and cash equivalents                                 |   | $      | 284,182     |   |   | $      | 451,698    |   |   | $ | 401,621 |   |
| Accounts      receivable                                       |   |   | 1,580,026   |   |   |   | 2,796,947  |   |   |   | 3,487,911 |   |
| Due      from Managing General Partner-derivatives             |   |   | -           |   |   |   | 735,155    |   |   |   | - |   |
| Due      from Managing General Partner-other                   |   |   | 302,668     |   |   |   | -          |   |   |   | - |   |
| Total      current assets                                      |   |   | 2,166,876   |   |   |   | 3,983,800  |   |   |   | 3,889,532 |   |
|                                                           |   |   |        |   |   |   |       |   |   |   |   |   |
| Oil      and gas properties, successful efforts method         |   |   | 45,009,520  |   |   |   | 45,008,837 |   |   |   | 31,226,722 |   |
| Wells      in progress                                         |   |   | -           |   |   |   | -          |   |   |   | 13,714,285 |   |
| Drilling      advances to Managing General Partner             |   |   | 54,741      |   |   |   | 55,424     |   |   |   | 55,424 |   |
| Oil      and gas properties, at cost                           |   |   | 45,064,261  |   |   |   | 45,064,261 |   |   |   | 44,996,431 |   |
| Less      accumulated depreciation, depletion and amortization |   |   | (12,801,870 | )      |   |   | (8,454,588 | )      |   |   | (2,021,701 | ) |
| Oil      and gas properties, net                               |   |   | 32,262,391  |   |   |   | 36,609,673 |   |   |   | 42,974,730 |   |
|                                                           |   |   |        |   |   |   |       |   |   |   |   |   |
| Due      from Managing General Partner-derivatives             |   |   | -           |   |   |   | 82,109     |   |   |   | - |   |
| Due      from Managing General Partner-other                   |   |   | 206,408     |   |   |   | -          |   |   |   | - |   |
|                                                           |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                           |   |   |        |   |   |   |       |   |   |   |   |   |
| Total      Assets                                              |   | $      | 34,635,675  |   |   | $      | 40,675,582 |   |   | $ | 46,864,262 |   |
|                                                           |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                           |   |   |        |   |   |   |       |   |   |   |   |   |
| Liabilities and Partners'      Equity                          |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                           |   |   |        |   |   |   |       |   |   |   |   |   |
| Current      liabilities:                                      |   |   |        |   |   |   |       |   |   |   |   |   |
| Accounts      payable                                          |   | $      | 79,529      |   |   | $      | 143,839    |   |   | $ | 368,977 |   |
| Due      to Managing General Partner-derivatives               |   |   | 262,242     |   |   |   | -          |   |   |   | - |   |
| Due      to Managing General Partner-other                     |   |   | -           |   |   |   | 10,201     |   |   |   | 199,745 |   |
| Total      current liabilities                                 |   |   | 341,771     |   |   |   | 154,040    |   |   |   | 568,722 |   |
|                                                           |   |   |        |   |   |   |       |   |   |   |   |   |
| Asset      retirement obligations                              |   |   | 382,922     |   |   |   | 365,402    |   |   |   | 285,911 |   |
| Total      liabilities                                         |   |   | 724,693     |   |   |   | 519,442    |   |   |   | 854,633 |   |
|                                                           |   |   |        |   |   |   |       |   |   |   |   |   |
| Commitments      and contingencies                             |   |   |        |   |   |   |       |   |   |   |   |   |
|                                                           |   |   |        |   |   |   |       |   |   |   |   |   |
| Partners'      equity:                                         |   |   |        |   |   |   |       |   |   |   |   |   |
| Managing      General Partner                                  |   |   | 6,793,262   |   |   |   | 8,031,231  |   |   |   | 9,202,027 |   |
| Limited      Partners - 2,023 units issued and outstanding     |   |   | 27,117,720  |   |   |   | 32,124,909 |   |   |   | 36,807,602 |   |
| Total      Partners' equity                                    |   |   | 33,910,982  |   |   |   | 40,156,140 |   |   |   | 46,009,629 |   |
|                                                           |   |   |        |   |   |   |       |   |   |   |   |   |
| Total      Liabilities and Partners' Equity                    |   | $      | 34,635,675  |   |   | $      | 40,675,582 |   |   | $ | 46,864,262 |   |

----

Index

|                                                      |   | 2007   |      |   | 2006   |   |       | Period      May 18, 2005 (date of inception) to December 31, 2005 |   |
|-----------------------------------------------------------|--------|--------|-----------|--------|--------|--------|------------|-----------------------------------------------------------------------------|--------|
| Revenues:                                                 |   |   |      |   |   |   |       |                                                                        |   |
| Oil      and gas sales                                    |   | $      | 7,772,799 |   |   | $      | 13,595,265 |                                                                        |   | $ | 4,442,990 |   |
| Oil      and gas price risk management (loss) gain, net   |   |   | (600,489  | )      |   |   | 946,671    |                                                                        |   |   | (31,322 | ) |
| Total      revenues                                       |   |   | 7,172,310 |   |   |   | 14,541,936 |                                                                        |   |   | 4,411,668 |   |
|                                                      |   |   |      |   |   |   |       |                                                                        |   |   |   |   |
| Operating      costs and expenses:                        |   |   |      |   |   |   |       |                                                                        |   |   |   |   |
| Production      and operating costs                       |   |   | 2,221,417 |   |   |   | 1,884,368  |                                                                        |   |   | 679,519 |   |
| Management      fee                                       |   |   | -         |   |   |   | -          |                                                                        |   |   | 606,791 |   |
| Direct      costs - general and administrative            |   |   | 53,438    |   |   |   | 215,194    |                                                                        |   |   | 32,405 |   |
| Depreciation,      depletion and amortization             |   |   | 4,347,282 |   |   |   | 6,432,887  |                                                                        |   |   | 2,021,701 |   |
| Accretion      of asset retirement obligations            |   |   | 17,520    |   |   |   | 11,661     |                                                                        |   |   | 4,060 |   |
| Total      operating costs and expenses                   |   |   | 6,639,657 |   |   |   | 8,544,110  |                                                                        |   |   | 3,344,476 |   |
|                                                      |   |   |      |   |   |   |       |                                                                        |   |   |   |   |
| Income      from operations                               |   |   | 532,653   |   |   |   | 5,997,826  |                                                                        |   |   | 1,067,192 |   |
|                                                      |   |   |      |   |   |   |       |                                                                        |   |   |   |   |
| Interest      income                                      |   |   | 85,333    |   |   |   | 70,868     |                                                                        |   |   | 401,492 |   |
|                                                      |   |   |      |   |   |   |       |                                                                        |   |   |   |   |
| Net      income                                           |   | $      | 617,986   |   |   | $      | 6,068,694  |                                                                        |   | $ | 1,468,684 |   |
|                                                      |   |   |      |   |   |   |       |                                                                        |   |   |   |   |
| Net      income allocated to partners                     |   | $      | 617,986   |   |   | $      | 6,068,694  |                                                                        |   | $ | 1,468,684 |   |
| Less      Managing General Partner interest in net income |   |   | 123,597   |   |   |   | 1,213,739  |                                                                        |   |   | 415,095 |   |
| Net      income allocated to Investor Partners            |   | $      | 494,389   |   |   | $      | 4,854,955  |                                                                        |   | $ | 1,053,589 |   |
|                                                      |   |   |      |   |   |   |       |                                                                        |   |   |   |   |
| Net      income per Investor Partner unit                 |   | $      | 244       |   |   | $      | 2,400      |                                                                        |   | $ | 521 |   |
|                                                      |   |   |      |   |   |   |       |                                                                        |   |   |   |   |
| Investor      Partner units outstanding                   |   |   | 2,023     |   |   |   | 2,023      |                                                                        |   |   | 2,023 |   |

----

Index

|                            |   | Investor      Partners |       |   | Managing      General Partner |   |       | Total  |   |
|---------------------------------|--------|------------------------|------------|--------|-------------------------------|--------|------------|--------|--------|
|                            |   |                   |       |   |                          |   |       |   |   |
| May      18, 2005               |   | $                      | 40,452,761 |   |                          | $      | 8,942,916  |   |   | $ | 49,395,677 |   |
|                            |   |                   |       |   |                          |   |       |   |   |   |   |   |
| Syndication      costs          |   |                   | (4,074,306 | )      |                          |   | -          |   |   |   | (4,074,306 | ) |
|                            |   |                   |       |   |                          |   |       |   |   |   |   |   |
| Distributions      to partners  |   |                   | (624,442   | )      |                          |   | (155,984   | )      |   |   | (780,426 | ) |
|                            |   |                   |       |   |                          |   |       |   |   |   |   |   |
| Net      income                 |   |                   | 1,053,589  |   |                          |   | 415,095    |   |   |   | 1,468,684 |   |
|                            |   |                   |       |   |                          |   |       |   |   |   |   |   |
| Balance,      December 31, 2005 |   |                   | 36,807,602 |   |                          |   | 9,202,027  |   |   |   | 46,009,629 |   |
|                            |   |                   |       |   |                          |   |       |   |   |   |   |   |
| Distributions      to partners  |   |                   | (9,537,648 | )      |                          |   | (2,384,535 | )      |   |   | (11,922,183 | ) |
|                            |   |                   |       |   |                          |   |       |   |   |   |   |   |
| Net      income                 |   |                   | 4,854,955  |   |                          |   | 1,213,739  |   |   |   | 6,068,694 |   |
|                            |   |                   |       |   |                          |   |       |   |   |   |   |   |
| Balance,      December 31, 2006 |   |                   | 32,124,909 |   |                          |   | 8,031,231  |   |   |   | 40,156,140 |   |
|                            |   |                   |       |   |                          |   |       |   |   |   |   |   |
| Distributions      to partners  |   |                   | (5,501,578 | )      |                          |   | (1,361,566 | )      |   |   | (6,863,144 | ) |
|                            |   |                   |       |   |                          |   |       |   |   |   |   |   |
| Net      income                 |   |                   | 494,389    |   |                          |   | 123,597    |   |   |   | 617,986 |   |
|                            |   |                   |       |   |                          |   |       |   |   |   |   |   |
| Balance,      December 31, 2007 |   | $                      | 27,117,720 |   |                          | $      | 6,793,262  |   |   | $ | 33,910,982 |   |

----

Index

|                                                                                         |   | 2007   |       |   | 2006   |   |        | Period      May 18, 2005 (date of inception) to December 31, 2005 |   |
|----------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-------------|-----------------------------------------------------------------------------|--------|
| Cash      flows from operating activities:                                                   |   |   |       |   |   |   |        |                                                                        |   |
| Net      income                                                                              |   | $      | 617,986    |   |   | $      | 6,068,694   |                                                                        |   | $ | 1,468,684 |   |
| Adjustments      to reconcile net income to net cash used in operating      activities:      |   |   |       |   |   |   |        |                                                                        |   |   |   |   |
| Depreciation,      depletion and amortization                                                |   |   | 4,347,282  |   |   |   | 6,432,887   |                                                                        |   |   | 2,021,701 |   |
| Accretion      of asset retirement obligations                                               |   |   | 17,520     |   |   |   | 11,661      |                                                                        |   |   | 4,060 |   |
| Unrealized      loss (gain) on derivative transactions                                       |   |   | 1,079,505  |   |   |   | (817,264    | )                                                                           |   |   | - |   |
| Exploratory      dry hole costs                                                              |   |   | -          |   |   |   | -           |                                                                        |   |   | - |   |
| Changes      in operating assets and liabilities:                                            |   |   |       |   |   |   |        |                                                                        |   |   |   |   |
| Decrease      (increase) in accounts receivable                                              |   |   | 1,216,921  |   |   |   | 690,964     |                                                                        |   |   | (3,487,911 | ) |
| (Decrease)      increase in accounts payable                                                 |   |   | (64,310    | )      |   |   | (225,138    | )                                                                           |   |   | 368,977 |   |
| (Decrease)      increase in due from/to Managing General Partner                             |   |   | (519,276   | )      |   |   | (189,544    | )                                                                           |   |   | 199,745 |   |
| Net      cash provided by operating activities                                               |   |   | 6,695,628  |   |   |   | 11,972,260  |                                                                        |   |   | 575,256 |   |
|                                                                                         |   |   |       |   |   |   |        |                                                                        |   |   |   |   |
| Cash      flows from investing activities:                                                   |   |   |       |   |   |   |        |                                                                        |   |   |   |   |
| Capital      expenditures for oil and gas properties                                         |   |   | -          |   |   |   | -           |                                                                        |   |   | (44,714,580 | ) |
| Net      cash used in investing activities                                                   |   |   | -          |   |   |   | -           |                                                                        |   |   | (44,714,580 | ) |
|                                                                                         |   |   |       |   |   |   |        |                                                                        |   |   |   |   |
| Cash      flows from financing activities:                                                   |   |   |       |   |   |   |        |                                                                        |   |   |   |   |
| Investor      Partners' contributions                                                        |   |   | -          |   |   |   | -           |                                                                        |   |   | 40,452,761 |   |
| Managing      General Partner contribution                                                   |   |   | -          |   |   |   | -           |                                                                        |   |   | 8,942,916 |   |
| Syndication      costs paid                                                                  |   |   | -          |   |   |   | -           |                                                                        |   |   | (4,074,306 | ) |
| Distributions      to Partners                                                               |   |   | (6,863,144 | )      |   |   | (11,922,183 | )                                                                           |   |   | (780,426 | ) |
| Net      cash (used in) provided by financing activities                                     |   |   | (6,863,144 | )      |   |   | (11,922,183 | )                                                                           |   |   | 44,540,945 |   |
|                                                                                         |   |   |       |   |   |   |        |                                                                        |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents                                    |   |   | (167,516   | )      |   |   | 50,077      |                                                                        |   |   | 401,621 |   |
| Cash      and cash equivalents, beginning of period                                          |   |   | 451,698    |   |   |   | 401,621     |                                                                        |   |   | - |   |
| Cash      and cash equivalents, end of period                                                |   | $      | 284,182    |   |   | $      | 451,698     |                                                                        |   | $ | 401,621 |   |
|                                                                                         |   |   |       |   |   |   |        |                                                                        |   |   |   |   |
| Supplemental      disclosure of non-cash activity:                                           |   |   |       |   |   |   |        |                                                                        |   |   |   |   |
| Asset      retirement obligation, with corresponding increase to oil and gas      properties |   | $      | -          |   |   | $      | 67,830      |                                                                        |   | $ | 281,851 |   |

----

Index

----

Index

----

Index

----

Index

----

Index

|   | Production Tax      Liability |
|--------|-------------------------------|

|   | Use of      Estimates |
|--------|-----------------------|

----

Index

----

Index

|                                                   |   | Year      Ended December 31,      2007 |      |   | Year      Ended December 31,      2006 |   |      | Period      from May 18, 2005 (date of      inception) to December 31,      2005 |   |
|--------------------------------------------------------|--------|---------------------------------------------|-----------|--------|---------------------------------------------|--------|-----------|--------------------------------------------------------------------------------------------|--------|
|                                                   |   |                                        |      |   |                                        |   |      |                                                                                       |   |
| Capital      contribution (1)                          |   | $                                           | -         |   |                                        | $      | -         |                                                                                       |   | $ | 8,942,916 |   |
| Syndication      costs (2)                             |   |                                        | -         |   |                                        |   | -         |                                                                                       |   |   | 4,074,306 |   |
| Management      fee (3)                                |   |                                        | -         |   |                                        |   | -         |                                                                                       |   |   | 606,791 |   |
| Sales      of leases (4)                               |   |                                        | -         |   |                                        |   | -         |                                                                                       |   |   | 635,880 |   |
| Drilling      advances to Managing General Partner (4) |   |                                        | -         |   |                                        |   | -         |                                                                                       |   |   | 44,078,700 |   |
| Well      charges (5)                                  |   |                                        | 260,294   |   |                                        |   | 246,743   |                                                                                       |   |   | 49,402 |   |
| Gas      marketing, supplies and equipment (6)         |   |                                        | 999,292   |   |                                        |   | 627,446   |                                                                                       |   |   | 161,594 |   |
| Gathering,      compression and processing fees (7)    |   |                                        | 275,922   |   |                                        |   | 242,261   |                                                                                       |   |   | - |   |
| Direct      costs - general and administrative (8)     |   |                                        | 53,438    |   |                                        |   | 215,194   |                                                                                       |   |   | 32,405 |   |
| Revenue      distribution (9)                          |   |                                        | 1,361,566 |   |                                        |   | 2,384,535 |                                                                                       |   |   | 155,984 |   |

----

Index

|                                               |   | Year      Ended December 31,      2007 |    |   | Year      Ended December 31,      2006 |   |
|----------------------------------------------------|--------|---------------------------------------------|---------|--------|---------------------------------------------|--------|
|                                               |   |                                        |    |   |                                        |   |
| Sales      of leases                               |   | $                                           | 19,929  |   |                                        | $      | 30,500 |   |
| Drilling      costs                                |   |                                        | (19,246 | )      |                                        |   | 13,683,785 |   |
| Wells      in progress                             |   |                                        | -       |   |                                        |   | (13,714,285 | ) |
| Drilling      advances to Managing General Partner |   | $                                           | (683    | )      |                                        | $      | - |   |

|   | · | reimbursement      at actual cost for all direct expenses incurred on behalf of the      Partnership; |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | monthly      well operating charges for operating and maintaining the wells during      producing operations at a competitive rate;and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | · | monthly      administration charge for Partnership  activities. |
|--------|--------|-----------------------------------------------------------------|

|  | · | well      tending, routine maintenance, andadjustment; |
|--|--------|--------------------------------------------------------|

|         | · | reading      meters, recording production, pumping, maintaining appropriate books and      records; and |
|--------------|--------|---------------------------------------------------------------------------------------------------------|
|    | · |  preparing      production related reports to the Partnership and government      agencies.        |

|   | · | the      purchase of equipment, materials, or third-party  services; |
|--------|--------|----------------------------------------------------------------------|

|   | · | the      cost of compression and third-party gathering services, or gathering      costs; |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | brine      disposal; and |
|--------|--------|--------------------------|

|   | · | rebuilding      of access roads. |
|--------|--------|----------------------------------|

----

Index

|   | · | For      swap instruments, the PDC as Managing General Partner, receives a fixed-      price for the hedged commodity and pays a floating market price to the      counterparty. The fixed-price payment and the floating-price payment are      netted, resulting in a net amount due to or from the      counterparty. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Collars      contain a fixed-floor price (put) and ceiling price (call). If the market      price exceeds the ceiling strike price or falls below the fixed floor      strike price, PDC, as Managing General Partner, receives the fixed-floor      price and pays the market price. If the market price is between the      ceiling and the floor strike price, no payments are due from either      party. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Floors      contained a floor price (put) whereby PDC, as Managing General Partner,      received from the counterparty, the floor price if the commodity market      price fell below the floor strike price, but received no payment when the      commodity market price exceeded the floorprice. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                      |   | Year Ended 2007 |     |   | Year Ended 2006 |   |
|---------------------------|--------|-----------------|----------|--------|-----------------|--------|
|                      |   | Short-term      |     |   | Long-term       |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |
| Natural      gas floors   |   | $               | 56,914   |   |            | $      | - |   |   | $ | 56,914 |   |   | $ | 723,042 |   |   | $ | 82,109 |   |   | $ | 805,151 |   |
| Natural      gas ceilings |   |            | (2,947   | )      |            |   | - |   |   |   | (2,947 | ) |   |   | (272 | ) |   |   | - |   |   |   | (272 | ) |
| Oil      floors           |   |            | -        |   |            |   | - |   |   |   | - |   |   |   | 12,386 |   |   |   | - |   |   |   | 12,386 |   |
| Oil      swaps            |   |            | (316,209 | )      |            |   | - |   |   |   | (316,209 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|                      |   | $               | (262,242 | )      |            | $      | - |   |   | $ | (262,241 | ) |   | $ | 735,156 |   |   | $ | 82,109 |   |   | $ | 817,265 |   |

|                                   |   | 2007   |       |   | 2006   |   |    | Period      May 18, 2005 (date of      inception) to December 31, 2005 |   |
|----------------------------------------|--------|--------|------------|--------|--------|--------|---------|----------------------------------------------------------------------------------|--------|
| Realized      gains (losses)           |   |   |       |   |   |   |    |                                                                             |   |
| Oil                                    |   | $      | (15,155    | )      |   | $      | (4,365  | )                                                                                |   | $ | (31,322 | ) |
| Gas                                    |   |   | 494,171    |   |   |   | 133,772 |                                                                             |   |   | - |   |
| Total      realized gain (loss)        |   |   | 479,016    |   |   |   | 129,407 |                                                                             |   |   | (31,322 | ) |
| Unrealized      gain (loss)            |   |   | (1,079,505 | )      |   |   | 817,264 |                                                                             |   |   | - |   |
| Oil      and gas price risk management |   | $      | (600,489   | )      |   | $      | 946,671 |                                                                             |   | $ | (31,322 | ) |

----

Index

|                     |   |      |   |                           |   | Floors                                            |   |   | Ceilings |   |       | Swaps (Fixed Prices)                              |   |
|--------------------------|--------|-----------|--------|--------------------------------|--------|---------------------------------------------------|--------|--------|----------|--------|------------|---------------------------------------------------|--------|
| Commodity/ Index/ Area   |   | Month Set |   | Month                          |   | Net MonthlyQuantity(Gas-MMbtuOil -Bbls) |   |   | Price    |   |       | Net MonthlyQuantity(Gas-MMbtuOil -Bbls) |   |   | Price |   |   | Net MonthlyQuantity(Gas-MMbtuOil -Bbls) |   |   | Price |   |
| Natural      Gas - (CIG) |   |      |   |                           |   |                                              |   |   |     |   |       |                                              |   |   |   |   |   |   |   |   |
| Piceance      Basin      |   |      |   |                           |   |                                              |   |   |     |   |       |                                              |   |   |   |   |   |   |   |   |
|                     |   | Apr-08    |   | Feb 09 -      Mar 09 |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 14,343 |   |   | $ | 7.76 |   |
|                     |   | Jul-08    |   | Feb 09 -      Mar 09 |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 8,555 |   |   |   | 8.52 |   |
|                     |   | Feb-08    |   | Feb 09 -      Mar 09 |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 8,555 |   |   |   | 8.18 |   |
|                     |   | Jan-08    |   | Apr      09 - Oct 09           |   |                                              | 15,519 |   |     | $      | 5.75       |                                              |   |   | 15,519 |   |   | $ | 8.75 |   |   |   | - |   |   |   | - |   |
|                     |   | Mar-08    |   | Apr      09 - Oct 09           |   |                                              | 15,247 |   |     |   | 5.75       |                                              |   |   | 15,247 |   |   |   | 9.05 |   |   |   | - |   |   |   | - |   |
|                     |   | Jul-08    |   | Nov      09 - Mar 10           |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 11,634 |   |   |   | 9.20 |   |
|                     |   | Jul-08    |   | Nov      09 - Mar 10           |   |                                              | 16,546 |   |     |   | 7.50       |                                              |   |   | 16,546 |   |   |   | 11.40 |   |   |   | - |   |   |   | - |   |
|                     |   | Nov-08    |   | Nov      10 - Mar 11           |   |                                              | 10,749 |   |     |   |  4.75 |                                              |   |   | 10,749 |   |   |   | 9.45 |   |   |   |   |   |   |   |   |   |
| Wattenberg      Field    |   |      |   |                           |   |                                              |   |   |     |   |       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Apr-08    |   | Feb 09 -      Mar 09 |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 2,535 |   |   |   | 7.76 |   |
|                     |   | Jul-08    |   | Feb 09 -      Mar 09 |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 1,498 |   |   |   | 8.52 |   |
|                     |   | Feb-08    |   | Feb 09 -      Mar 09 |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 1,498 |   |   |   | 8.18 |   |
|                     |   | Jan-08    |   | Apr      09 - Oct 09           |   |                                              | 2,744  |   |     |   | 5.75       |                                              |   |   | 2,744 |   |   |   | 8.75 |   |   |   | - |   |   |   | - |   |
|                     |   | Mar-08    |   | Apr      09 - Oct 09           |   |                                              | 2,495  |   |     |   | 5.75       |                                              |   |   | 2,495 |   |   |   | 9.05 |   |   |   | - |   |   |   | - |   |
|                     |   | Jul-08    |   | Nov      09 - Mar 10           |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 1,996 |   |   |   | 9.20 |   |
|                     |   | Jul-08    |   | Nov      09 - Mar 10           |   |                                              | 2,874  |   |     |   | 7.50       |                                              |   |   | 2,874 |   |   |   | 11.40 |   |   |   | - |   |   |   | - |   |
|                     |   | Nov-08    |   | Nov      10 - Mar 11           |   |                                              | 2,336  |   |     | $      | 4.75       |                                              |   |   | 2,336 |   |   | $ | 9.45 |   |   |   |   |   |   |   |   |   |
| Oil      - NYMEX         |   |      |   |                           |   |                                              |   |   |     |   |       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg      Field    |   |      |   |                           |   |                                              |   |   |     |   |       |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Jan-08    |   | Feb 09      - Dec 09      |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 711 |   |   |   | 84.90 |   |
|                     |   | Jan-08    |   | Feb 09      - Dec 09      |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 711 |   |   |   | 85.40 |   |
|                     |   | May-08    |   | Feb 09      - Dec 09      |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 284 |   |   |   | 117.35 |   |
|                     |   | May-08    |   | Jan      10 - Dec 10           |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 725 |   |   |   | 92.74 |   |
|                     |   | May-08    |   | Jan      10 - Dec 10           |   |                                              | -      |   |     |   | -          |                                              |   |   | - |   |   |   | - |   |   |   | 725 |   |   | $ | 93.17 |   |

----

Index

|                     |   |      |   |                 |   | Floors                                       |   |   | Ceilings |   |   | Swaps (Fixed Prices)                             |   |
|--------------------------|--------|-----------|--------|----------------------|--------|----------------------------------------------|--------|--------|----------|--------|--------|--------------------------------------------------|--------|
| Commodity/ Index/ Area   |   | Month Set |   | Month                |   | Net MonthlyQuantity(Gas-MMbtuOil      -Bbls) |   |   | Price    |   |   | Net MonthlyQuantity(Gas -MMbtuOil    -Bbls) |   |   | Price |   |   | Net MonthlyQuantity(Gas-MMbtuOil    -Bbls) |   |   | Price |   |
| Natural      Gas - (CIG) |   |      |   |                 |   |                                         |   |   |     |   |   |                                             |   |   |   |   |   |   |   |   |
| Piceance      Basin      |   |      |   |                 |   |                                         |   |   |     |   |   |                                             |   |   |   |   |   |   |   |   |
|                     |   | Dec-06    |   | Jan      08 - Mar 08 |   |                                         | 12,321 |   |     | $      | 5.25   |                                             |   |   | - |   |   | $ | - |   |   |   | - |   |   |   | - |   |
|                     |   | Jan-07    |   | Jan      08 - Mar 08 |   |                                         | 12,321 |   |     |   | 5.25   |                                             |   |   | 12,321 |   |   |   | 9.80 |   |   |   | - |   |   |   | - |   |
|                     |   | May-07    |   | Apr      08 - Oct 08 |   |                                         | 24,318 |   |     |   | 5.50   |                                             |   |   | 24,318 |   |   |   | 10.35 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |                 |   |                                         |   |   |     |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg      Field    |   |      |   |                 |   |                                         |   |   |     |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Jan-07    |   | Jan      08 - Mar 08 |   |                                         | 3,049  |   |     |   | 5.25   |                                             |   |   | 3,049.07 |   |   |   | 9.80 |   |   |   | - |   |   |   | - |   |
|                     |   | May-07    |   | Apr      08 - Oct 08 |   |                                         | 7,318  |   |     | $      | 5.50   |                                             |   |   | 7,318 |   |   | $ | 10.35 |   |   |   | - |   |   |   | - |   |
|                     |   |      |   |                 |   |                                         |   |   |     |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil      - NYMEX         |   |      |   |                 |   |                                         |   |   |     |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg      Field    |   |      |   |                 |   |                                         |   |   |     |   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Oct-07    |   | Jan      08 - Dec 08 |   |                                         | -      |   |     |   | -      |                                             |   |   | - |   |   |   | - |   |   |   | 3,027 |   |   | $ | 84.20 |   |

|                     |   |      |   |                 |   | Floors                                      |   |   |   |   |   | Ceilings                                    |   |   |   |   |
|--------------------------|--------|-----------|--------|----------------------|--------|---------------------------------------------|--------|--------|--------|--------|--------|---------------------------------------------|--------|--------|--------|--------|
| Commodity/ Index/ Area   |   | Month Set |   | Month                |   | Net Monthly Quantity(Gas-MMbtuOil    -Bbls) |   |   | Price  |   |   | Net Monthly Quantity(Gas-MMbtuOil    -Bbls) |   |   | Price  |   |
| Natural      Gas - (CIG) |   |      |   |                 |   |                                        |   |   |   |   |   |                                        |   |   |
| Piceance      Basin      |   |      |   |                 |   |                                        |   |   |   |   |   |                                        |   |   |
|                     |   | Jul-05    |   | Jan      07 - Mar 07 |   |                                        | 15,374 |   |   | $      | 6.00   |                                        |   |   | 7,687  |   |   | $ | 8.40 |   |
|                     |   | Feb-06    |   | Jan      07 - Mar 07 |   |                                        | 32,945 |   |   |   | 6.50   |                                        |   |   | -      |   |   |   | - |   |
|                     |   | Feb-06    |   | Apr      07 - Oct 07 |   |                                        | 24,159 |   |   |   | 5.50   |                                        |   |   | -      |   |   |   | - |   |
|                     |   | Sep-06    |   | Jan      07 - Mar 07 |   |                                        | 58,202 |   |   |   | 4.00   |                                        |   |   | -      |   |   |   | - |   |
|                     |   | Sep-06    |   | Apr      07 - Oct 07 |   |                                        | 82,361 |   |   |   | 4.50   |                                        |   |   | -      |   |   |   | - |   |
|                     |   | Dec-06    |   | Nov      07 - Mar 08 |   |                                        | 41,730 |   |   |   | 5.25   |                                        |   |   | -      |   |   |   | - |   |
|                     |   |      |   |                 |   |                                        |   |   |   |   |   |                                        |   |   |   |   |   |   |   |   |
| Oil      - NYMEX         |   |      |   |                 |   |                                        |   |   |   |   |   |                                        |   |   |   |   |   |   |
| Wattenberg      Field    |   |      |   |                 |   |                                        |   |   |   |   |   |                                        |   |   |   |   |   |   |
|                     |   | Sep-06    |   | Jan      07 - Oct 07 |   |                                        | 2,149  |   |   | $      | 50.00  |                                        |   |   | -      |   |   |   | - |   |

----

Index

|                                                              |   | Investor      Partners |   |   | Managing      General Partner |   |
|-------------------------------------------------------------------|--------|------------------------|--------|--------|-------------------------------|--------|
| Partnership      Revenue:                                         |   |                   |   |   |                          |   |
| Oil      and gas sales                                            |   |                   | 80     | %      |                          |   | 20 | % |
| Preferred      cash distribution (e)                              |   |                   | 100    | %      |                          |   | 0 | % |
| Oil      and gas price risk management gain (loss)                |   |                   | 80     | %      |                          |   | 20 | % |
| Sale      of productive properties                                |   |                   | 80     | %      |                          |   | 20 | % |
| Sale      of equipment                                            |   |                   | 0      | %      |                          |   | 100 | % |
| Sale      of undeveloped leases                                   |   |                   | 80     | %      |                          |   | 20 | % |
| Interest      income                                              |   |                   | 80     | %      |                          |   | 20 | % |
|                                                              |   |                   |   |   |                          |   |   |   |
| Partnership      Costs:                                           |   |                   |   |   |                          |   |   |   |
| Organization      costs (a)                                       |   |                   | 0      | %      |                          |   | 100 | % |
| Broker-dealer      commissions and expenses/syndication costs (a) |   |                   | 100    | %      |                          |   | 0 | % |
| Cost      of oil and gas properties:                              |   |                   |   |   |                          |   |   |   |
| Undeveloped      lease costs                                      |   |                   | 0      | %      |                          |   | 100 | % |
| Tangible      well costs                                          |   |                   | 0      | %      |                          |   | 100 | % |
| Intangible      drilling costs                                    |   |                   | 100    | %      |                          |   | 0 | % |
| Other      costs and expenses:                                    |   |                   |   |   |                          |   |   |   |
| Management      fee (b)                                           |   |                   | 100    | %      |                          |   | 0 | % |
| Production      and operating costs (c)                           |   |                   | 80     | %      |                          |   | 20 | % |
| Depreciation,      depletion and amortization expense             |   |                   | 80     | %      |                          |   | 20 | % |
| Accretion      of asset retirement obligations                    |   |                   | 80     | %      |                          |   | 20 | % |
| Direct      costs (d)                                             |   |                   | 80     | %      |                          |   | 20 | % |

|   | (a) | The      Managing General Partner paid all legal, accounting, printing, and filing      fees associated with the organization of the Partnership and the offering      of units and is allocated 100% of these costs.  The Investor      Partners paid all dealer manager commissions, discounts, and due diligence      reimbursements and are allocated 100% of these  costs. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Represents      a one-time fee paid to the Managing General Partner on the day the      Partnership was funded equal to 1-1/2% of total investor      subscriptions. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Represents      operating costs incurred after the completion of productive wells,      including monthly per-well charges paid to the Managing General      Partner. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The      Managing General Partner receives monthly reimbursement from the      Partnership for direct costs – general and administrative incurred by the      Managing General Partner on behalf of the  Partnership. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | (e) | To      the extent that Investor Partners receive preferred cash distributions,      the allocations for Investor Partners will be increased accordingly and      the allocation for the Managing General Partner will likewise be      decreased.  See Performance Standard      Obligation of Managing General Partner  below. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                  |   | Year      Ended December 31,      2007 |    |   | Year      Ended December 31,      2006 |   |      | Period      from May 18, 2005 (date of      inception) to December 31,      2005 |   |
|-------------------------------------------------------|--------|---------------------------------------------|---------|--------|---------------------------------------------|--------|-----------|--------------------------------------------------------------------------------------------|--------|
| Net      Income                                       |   | $                                           | 617,986 |   |                                        | $      | 6,068,694 |                                                                                       |   | $ | 1,468,684 |   |
| Plus      Management fee                              |   |                                        | -       |   |                                        |   | -         |                                                                                       |   |   | 606,791 |   |
| Net      Income allocable to the partners             |   | $                                           | 617,986 |   |                                        | $      | 6,068,694 |                                                                                       |   | $ | 2,075,475 |   |
|                                                  |   |                                        |    |   |                                        |   |      |                                                                                       |   |   |   |   |
| Net      Income allocable to Investor Partners:       |   |                                        |    |   |                                        |   |      |                                                                                       |   |   |   |   |
| 80%      of Net Income allocable to the Partners      |   | $                                           | 494,389 |   |                                        | $      | 4,854,955 |                                                                                       |   | $ | 1,660,380 |   |
| 100%      of Management Fee                           |   |                                        | -       |   |                                        |   | -         |                                                                                       |   |   | (606,791 | ) |
| Net      income allocable to Investor Partners        |   |                                        | 494,389 |   |                                        |   | 4,854,955 |                                                                                       |   |   | 1,053,589 |   |
|                                                  |   |                                        |    |   |                                        |   |      |                                                                                       |   |   |   |   |
| Net      Income allocable to Managing General Partner |   |                                        |    |   |                                        |   |      |                                                                                       |   |   |   |   |
| 20%      of Net Income allocable to the Partners      |   |                                        | 123,597 |   |                                        |   | 1,213,739 |                                                                                       |   |   | 415,095 |   |
| Net      Income allacoble to Managing General Partner |   |                                        | 123,597 |   |                                        |   | 1,213,739 |                                                                                       |   |   | 415,095 |   |
|                                                  |   |                                        |    |   |                                        |   |      |                                                                                       |   |   |   |   |
| Net      Income                                       |   | $                                           | 617,986 |   |                                        | $      | 6,068,694 |                                                                                       |   | $ | 1,468,684 |   |

----

Index

|                                                           |   | 2007   |        |   | 2006   |   |       | 2005   |   |
|----------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
|                                                           |   |   |        |   |   |   |       |   |   |
| Leasehold      costs                                           |   | $      | 686,309     |   |   | $      | 666,380    |   |   | $ | 635,880 |   |
| Development      costs                                         |   |   | 44,323,211  |   |   |   | 44,342,457 |   |   |   | 30,590,842 |   |
| Oil      and gas properties, successful efforts method         |   |   | 45,009,520  |   |   |   | 45,008,837 |   |   |   | 31,226,722 |   |
| Wells      in progress                                         |   |   | -           |   |   |   | -          |   |   |   | 13,714,285 |   |
| Drilling      advances to Managing General Partner             |   |   | 54,741      |   |   |   | 55,424     |   |   |   | 55,424 |   |
| Oil      and gas properties at cost                            |   |   | 45,064,261  |   |   |   | 45,064,261 |   |   |   | 44,996,431 |   |
| Less      accumulated depreciation, depletion and amortization |   |   | (12,801,870 | )      |   |   | (8,454,588 | )      |   |   | (2,021,701 | ) |
| Oil      and gas properties, net                               |   | $      | 32,262,391  |   |   | $      | 36,609,673 |   |   | $ | 42,974,730 |   |

----

Index

|                                                 |   | 2007   |    |   | 2006   |   |    | 2005   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                 |   |   |    |   |   |   |    |   |   |
| Balance      at beginning of period                  |   | $      | 365,402 |   |   | $      | 285,911 |   |   | $ | - |   |
| Obligations      assumed with development activities |   |   | -       |   |   |   | 67,830  |   |   |   | 281,851 |   |
| Accretion      expense                               |   |   | 17,520  |   |   |   | 11,661  |   |   |   | 4,060 |   |
| Balance      at end of period                        |   | $      | 382,922 |   |   | $      | 365,402 |   |   | $ | 285,911 |   |

----

Index

|                      |   | 2007   |    |   | 2006   |   |       | 2005   |   |
|---------------------------|--------|--------|---------|--------|--------|--------|------------|--------|--------|
|                      |   |   |    |   |   |   |       |   |   |
| Leasehold      costs      |   | $      | 19,929  |   |   | $      | 30,500     |   |   | $ | 635,880 |   |
| Development      costs    |   |   | (19,246 | )      |   |   | 13,751,615 |   |   |   | 30,590,842 |   |
| Total      costs incurred |   | $      | 683     |   |   | $      | 13,782,115 |   |   | $ | 31,226,722 |   |

----

Index

|                                                                   |   |   |    |   | Oil (Bbls) |   |        |   |   |
|------------------------------------------------------------------------|--------|--------|---------|--------|------------|--------|-------------|--------|--------|
|                                                                   |   | 2007   |    |   | 2006       |   |        | 2005   |   |
| Proved      reserves:                                                  |   |   |    |   |       |   |        |   |   |
| Beginning      of year                                                 |   |   | 477,515 |   |       |   | 743,000     |   |   |   | - |   |
| Extensions,      discoveries and improved recovery, less related costs |   |   |    |   |       |   |  7,734 |   |   |   |  803,000 |   |
| Revisions      of previous estimates                                   |   |   | 108,221 |   |       |   | (168,579    | )      |   |   | - |   |
| Production                                                             |   |   | (49,439 | )      |       |   | (104,640    | )      |   |   | (60,000 | ) |
| End      of Year, December 31                                          |   |   | 536,297 |   |       |   | 477,515     |   |   |   | 743,000 |   |

|                                                                   |   |   |       |   | Gas (Mcf) |   |         |   |   |
|------------------------------------------------------------------------|--------|--------|------------|--------|-----------|--------|--------------|--------|--------|
|                                                                   |   | 2007   |       |   | 2006      |   |         | 2005   |   |
| Proved      reserves:                                                  |   |   |       |   |      |   |         |   |   |
| Beginning      of year                                                 |   |   | 10,562,968 |   |      |   | 11,899,000   |   |   |   | - |   |
| Extensions,      discoveries and improved recovery, less related costs |   |   |       |   |      |   |  44,449 |   |   |   |  12,015,000 |   |
| Revisions      of previous estimates                                   |   |   | (235,634   | )      |      |   | (84,010      | )      |   |   | - |   |
| Production                                                             |   |   | (1,005,581 | )      |      |   | (1,296,471   | )      |   |   | (116,000 | ) |
| End      of Year, December 31                                          |   |   | 9,321,753  |   |      |   | 10,562,968   |   |   |   | 11,899,000 |   |

|                      |   | December 31, |      |
|---------------------------|--------|-------------------|-----------|
| Proved Developed Reserves |   | 2007              |      |   | 2006 |   |   | 2005 |   |
|                      |   |              |      |   |   |   |   |   |   |
| Oil      (Bbl)            |   |              | 262,026   |   |   |   | 329,548 |   |   |   | 560,465 |   |
| Natural      Gas (Mcf)    |   |              | 8,112,470 |   |   |   | 9,581,450 |   |   |   | 2,795,267 |   |

| · | Bbl      – One barrel of 42 U.S. gallons of liquidvolume |
|--------|----------------------------------------------------------------|

| · | Mcf      – One thousand cubic feet |
|--------|------------------------------------------|

----

Index

|                                                                    |   | As of December 31, |        |
|-------------------------------------------------------------------------|--------|-------------------------|-------------|
|                                                                    |   | 2007                    |        |   | 2006 |   |   | 2005 |   |
|                                                                    |   |                    |        |   |   |   |   |   |   |
| Future      estimated revenues                                          |   | $                       | 105,400,068 |   |   | $ | 74,787,985 |   |   | $ | 139,312,000 |   |
| Future      estimated production costs                                  |   |                    | (28,122,429 | ) |   |   | (22,638,344 | ) |   |   | (31,322,000 | ) |
| Future      estimated development costs                                 |   |                    | (6,874,794  | ) |   |   | (7,292,064 | ) |   |   | (5,132,000 | ) |
| Future      net cash flows                                              |   |                    | 70,402,845  |   |   |   | 44,857,577 |   |   |   | 102,858,000 |   |
| 10%      annual discount for estimated timing of cash flows             |   |                    | (34,510,000 | ) |   |   | (19,534,000 | ) |   |   | (49,437,000 | ) |
| Standardized      measure of discounted future estimated net cash flows |   | $                       | 35,892,845  |   |   | $ | 25,323,577 |   |   | $ | 53,421,000 |   |

|                                                                    |   | As of December 31, |       |
|-------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                    |   | 2007                    |       |   | 2006 |   |   | 2005 |   |
|                                                                    |   |                    |       |   |   |   |   |   |   |
|                                                                    |   |                    |       |   |   |   |   |   |   |
| Sales      of oil and gas production, net of production costs           |   | $                       | (5,551,382 | ) |   | $ | (11,710,897 | ) |   | $ | (3,763,000 | ) |
| Net      changes in prices and production costs                         |   |                    | 15,463,000 |   |   |   | (20,053,000 | ) |   |   | - |   |
| Extensions,      discoveries, and improved recovery, less related costs |   |                    | -          |   |   |   | 157,000 |   |   |   | 57,184,000 |   |
| Revisions      of previous quantity estimates                           |   |                    | 391,000    |   |   |   | (6,237,000 | ) |   |   | - |   |
| Accretion      of discount                                              |   |                    | 2,166,000  |   |   |   | 4,614,000 |   |   |   | - |   |
| Timing      and other                                                   |   |                    | (1,899,350 | ) |   |   | 5,132,474 |   |   |   | - |   |
| Net      change                                                         |   | $                       | 10,569,268 |   |   | $ | (28,097,423 | ) |   | $ | 53,421,000 |   |

----

Index

|               |   | Year End Price |   |
|--------------------|--------|----------------|--------|
| As of December 31, |   | Oil            |   |   | Gas |   |
| 2007               |   | $              | 80.07  |   |   | $ | 6.70 |   |
| 2006               |   |           | 58.29  |   |   |   | 4.45 |   |
| 2005               |   |           | 58.52  |   |   |   | 8.06 |   |

----

Index

| BALANCE      SHEETS                                            |   | As of                    |       |
|----------------------------------------------------------------|--------|--------------------------|------------|
| Assets                                                         |   | March 31,      2007 |       |   | June 30,      2007 |   |   | September 30,      2007 |   |   | December 31,      2007 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |
| Current      assets:                                           |   |                     |       |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents                                 |   | $                        | 263,288    |   |   | $ | 274,470 |   |   | $ | 283,890 |   |   | $ | 284,182 |   |
| Accounts      receivable                                       |   |                     | 2,418,733  |   |   |   | 2,133,424 |   |   |   | 1,703,733 |   |   |   | 1,580,026 |   |
| Due      from Managing General Partner-derivatives             |   |                     | 371,575    |   |   |   | 425,842 |   |   |   | 373,244 |   |   |   | - |   |
| Due      from Managing General Partner-other                   |   |                     | 327,341    |   |   |   | 490,950 |   |   |   | 483,893 |   |   |   | 302,668 |   |
| Total      current assets                                      |   |                     | 3,380,937  |   |   |   | 3,324,686 |   |   |   | 2,844,760 |   |   |   | 2,166,876 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil      and gas properties, successful efforts method         |   |                     | 45,009,520 |   |   |   | 45,009,520 |   |   |   | 45,009,520 |   |   |   | 45,009,520 |   |
| Wells      in progress                                         |   |                     | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Drilling      advances to Managing General Partner             |   |                     | 54,741     |   |   |   | 54,741 |   |   |   | 54,741 |   |   |   | 54,741 |   |
| Oil      and gas properties, at cost                           |   |                     | 45,064,261 |   |   |   | 45,064,261 |   |   |   | 45,064,261 |   |   |   | 45,064,261 |   |
| Less      accumulated depreciation, depletion and amortization |   |                     | (9,779,210 | ) |   |   | (10,938,692 | ) |   |   | (11,924,924 | ) |   |   | (12,801,870 | ) |
| Oil      and gas properties, net                               |   |                     | 35,285,051 |   |   |   | 34,125,569 |   |   |   | 33,139,337 |   |   |   | 32,262,391 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due      from Managing General Partner-derivatives             |   |                     | -          |   |   |   | 66,156 |   |   |   | 19,167 |   |   |   | - |   |
| Due      from Managing General Partner-other                   |   |                     | 80,749     |   |   |   | 150,710 |   |   |   | 206,408 |   |   |   | 206,408 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Assets                                              |   | $                        | 38,665,988 |   |   | $ | 37,516,411 |   |   | $ | 36,003,264 |   |   | $ | 34,561,203 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners'      Equity                          |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current      liabilities:                                      |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      payable                                          |   | $                        | 217,404    |   |   | $ | 189,477 |   |   | $ | 147,907 |   |   | $ | 79,529 |   |
| Due      to Managing General Partner-derivatives               |   |                     | -          |   |   |   | - |   |   |   | - |   |   |   | 262,242 |   |
| Total      current liabilities                                 |   |                     | 217,404    |   |   |   | 189,477 |   |   |   | 147,907 |   |   |   | 341,771 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset      retirement obligations                              |   |                     | 369,782    |   |   |   | 374,162 |   |   |   | 378,542 |   |   |   | 382,922 |   |
| Total      liabilities                                         |   |                     | 587,186    |   |   |   | 563,639 |   |   |   | 526,449 |   |   |   | 724,693 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'      equity:                                         |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing      General Partner                                  |   |                     | 7,631,914  |   |   |   | 7,431,761 |   |   |   | 7,147,710 |   |   |   | 6,793,262 |   |
| Limited      Partners - 2,023 units issued and outstanding     |   |                     | 30,527,637 |   |   |   | 29,671,721 |   |   |   | 28,535,513 |   |   |   | 27,117,720 |   |
| Total      Partners' equity                                    |   |                     | 38,159,551 |   |   |   | 37,103,482 |   |   |   | 35,683,223 |   |   |   | 33,910,982 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Liabilities and Partners' Equity                    |   | $                        | 38,746,737 |   |   | $ | 37,667,121 |   |   | $ | 36,209,672 |   |   | $ | 34,635,675 |   |

----

Index

| BALANCE      SHEETS                                            |   | As of                    |       |
|----------------------------------------------------------------|--------|--------------------------|------------|
| Assets                                                         |   | March 31,      2006 |       |   | June 30,      2006 |   |   | September 30,      2006 |   |   | December 31,      2006 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |
| Current      assets:                                           |   |                     |       |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents                                 |   | $                        | 417,491    |   |   | $ | 421,941 |   |   | $ | 422,831 |   |   | $ | 451,698 |   |
| Accounts      receivable                                       |   |                     | 3,798,147  |   |   |   | 3,092,974 |   |   |   | 4,120,685 |   |   |   | 2,796,947 |   |
| Due      from Managing General Partner-derivatives             |   |                     | 33,100     |   |   |   | 114,226 |   |   |   | 549,140 |   |   |   | 735,155 |   |
| Total      current assets                                      |   |                     | 4,248,738  |   |   |   | 3,629,141 |   |   |   | 5,092,656 |   |   |   | 3,983,800 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil      and gas properties, successful efforts method         |   |                     | 31,710,935 |   |   |   | 38,218,042 |   |   |   | 44,902,228 |   |   |   | 45,008,837 |   |
| Wells      in progress                                         |   |                     | 12,493,942 |   |   |   | 5,585,050 |   |   |   | - |   |   |   | - |   |
| Drilling      advances to Managing General Partner             |   |                     | 791,554    |   |   |   | 1,193,339 |   |   |   | 94,203 |   |   |   | 55,424 |   |
| Oil      and gas properties, at cost                           |   |                     | 44,996,431 |   |   |   | 44,996,431 |   |   |   | 44,996,431 |   |   |   | 45,064,261 |   |
| Less      accumulated depreciation, depletion and amortization |   |                     | (3,640,234 | ) |   |   | (5,013,694 | ) |   |   | (6,869,961 | ) |   |   | (8,454,588 | ) |
| Oil      and gas properties, net                               |   |                     | 41,356,197 |   |   |   | 39,982,737 |   |   |   | 38,126,470 |   |   |   | 36,609,673 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due      from Managing General Partner-derivatives             |   |                     | 25,538     |   |   |   | 29,353 |   |   |   | 224,289 |   |   |   | 82,109 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Assets                                              |   | $                        | 45,630,473 |   |   | $ | 43,641,231 |   |   | $ | 43,443,415 |   |   | $ | 40,675,582 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners'      Equity                          |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current      liabilities:                                      |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      payable                                          |   | $                        | 182,376    |   |   | $ | 154,783 |   |   | $ | 286,920 |   |   | $ | 143,839 |   |
| Due      to Managing General Partner-other                     |   |                     | 122,964    |   |   |   | 25,304 |   |   |   | 152,723 |   |   |   | 10,201 |   |
| Total      current liabilities                                 |   |                     | 305,340    |   |   |   | 180,087 |   |   |   | 439,643 |   |   |   | 154,040 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset      retirement obligations                              |   |                     | 288,941    |   |   |   | 292,173 |   |   |   | 295,418 |   |   |   | 365,402 |   |
| Total      liabilities                                         |   |                     | 594,281    |   |   |   | 472,260 |   |   |   | 735,061 |   |   |   | 519,442 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners'      equity:                                         |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing      General Partner                                  |   |                     | 9,007,239  |   |   |   | 8,633,795 |   |   |   | 8,541,673 |   |   |   | 8,031,231 |   |
| Limited      Partners - 2,023 units issued and outstanding     |   |                     | 36,028,953 |   |   |   | 34,535,176 |   |   |   | 34,166,681 |   |   |   | 32,124,909 |   |
| Total      Partners' equity                                    |   |                     | 45,036,192 |   |   |   | 43,168,971 |   |   |   | 42,708,354 |   |   |   | 40,156,140 |   |
|                                                           |   |                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Liabilities and Partners' Equity                    |   | $                        | 45,630,473 |   |   | $ | 43,641,231 |   |   | $ | 43,443,415 |   |   | $ | 40,675,582 |   |

----

Index

| BALANCE      SHEETS                                            |   | As of                   |       |
|----------------------------------------------------------------|--------|-------------------------|------------|
| Assets                                                         |   | June 30,      2005 |       |   | September 30,      2005 |   |   | December 31,      2005 |   |
|                                                           |   |                    |       |   |   |   |   |   |   |
| Current      assets:                                           |   |                    |       |   |   |   |   |   |   |
| Cash      and cash equivalents                                 |   | $                       | 42,969,290 |   |   | $ | 20,635,453 |   |   | $ | 401,621 |   |
| Accounts      receivable                                       |   |                    | -          |   |   |   | 955,079 |   |   |   | 3,487,911 |   |
| Prepaid      and other current assets                          |   |                    | 84,516     |   |   |   | 15,971 |   |   |   | - |   |
| Total      current assets                                      |   |                    | 43,053,806 |   |   |   | 21,606,503 |   |   |   | 3,889,532 |   |
|                                                           |   |                    |       |   |   |   |   |   |   |   |   |   |
|                                                           |   |                    |       |   |   |   |   |   |   |   |   |   |
| Oil      and gas properties, successful efforts method         |   |                    | 2,411,473  |   |   |   | 21,917,731 |   |   |   | 31,226,722 |   |
| Wells      in progress                                         |   |                    | 4,012,822  |   |   |   | 6,740,121 |   |   |   | 13,714,285 |   |
| Drilling      advances to Managing General Partner             |   |                    | 55,424     |   |   |   | 55,424 |   |   |   | 55,424 |   |
| Oil      and gas properties, at cost                           |   |                    | 6,479,719  |   |   |   | 28,713,276 |   |   |   | 44,996,431 |   |
| Less      accumulated depreciation, depletion and amortization |   |                    | -          |   |   |   | (358,600 | ) |   |   | (2,021,701 | ) |
| Oil      and gas properties, net                               |   |                    | 6,479,719  |   |   |   | 28,354,676 |   |   |   | 42,974,730 |   |
|                                                           |   |                    |       |   |   |   |   |   |   |   |   |   |
| Total      Assets                                              |   | $                       | 49,533,525 |   |   | $ | 49,961,179 |   |   | $ | 46,864,262 |   |
|                                                           |   |                    |       |   |   |   |   |   |   |   |   |   |
|                                                           |   |                    |       |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners'      Equity                          |   |                    |       |   |   |   |   |   |   |   |   |   |
|                                                           |   |                    |       |   |   |   |   |   |   |   |   |   |
| Current      liabilities:                                      |   |                    |       |   |   |   |   |   |   |   |   |   |
| Accounts      payable                                          |   | $                       | -          |   |   | $ | 174,650 |   |   | $ | 368,977 |   |
| Due      to Managing General Partner-derivatives               |   |                    | -          |   |   |   | 19,935 |   |   |   | - |   |
| Due      to Managing General Partner-other                     |   |                    | 4,728,248  |   |   |   | 4,292,370 |   |   |   | 199,745 |   |
| Total      current liabilities                                 |   |                    | 4,728,248  |   |   |   | 4,486,955 |   |   |   | 568,722 |   |
|                                                           |   |                    |       |   |   |   |   |   |   |   |   |   |
| Asset      retirement obligations                              |   |                    | -          |   |   |   | 74,995 |   |   |   | 285,911 |   |
| Total      liabilities                                         |   |                    | 4,728,248  |   |   |   | 4,561,950 |   |   |   | 854,633 |   |
|                                                           |   |                    |       |   |   |   |   |   |   |   |   |   |
| Partners'      equity:                                         |   |                    |       |   |   |   |   |   |   |   |   |   |
| Managing      General Partner                                  |   |                    | 8,961,157  |   |   |   | 9,079,947 |   |   |   | 9,202,027 |   |
| Limited      Partners - 2,023 units issued and outstanding     |   |                    | 35,844,120 |   |   |   | 36,319,282 |   |   |   | 36,807,602 |   |
| Total      Partners' equity                                    |   |                    | 44,805,277 |   |   |   | 45,399,229 |   |   |   | 46,009,629 |   |
|                                                           |   |                    |       |   |   |   |   |   |   |   |   |   |
| Total      Liabilities and Partners' Equity                    |   | $                       | 49,533,525 |   |   | $ | 49,961,179 |   |   | $ | 46,864,262 |   |

----

Index

|                                                             |   | Quarter Ended            |      |
|------------------------------------------------------------------|--------|--------------------------|-----------|
| STATEMENTS      OF OPERATIONS                                    |   | March 31,      2007 |      |   | June 30,      2007 |   |   | September 30,      2007 |   |   | December 31,      2007 |   |
|                                                             |   |                     |      |   |   |   |   |   |   |   |   |   |
| Revenues:                                                        |   |                     |      |   |   |   |   |   |   |   |   |   |
| Oil      and gas sales                                           |   | $                        | 2,432,705 |   |   | $ | 2,107,726 |   |   | $ | 1,678,035 |   |   | $ | 1,554,333 |   |
| Oil      and gas price risk management (loss) gain, net          |   |                     | (458,623  | ) |   |   | 233,406 |   |   |   | 91,811 |   |   |   | (467,083 | ) |
| Total      revenues                                              |   |                     | 1,974,082 |   |   |   | 2,341,132 |   |   |   | 1,769,846 |   |   |   | 1,087,250 |   |
|                                                             |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      costs and expenses:                               |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production      and operating costs                              |   |                     | 537,508   |   |   |   | 460,330 |   |   |   | 528,451 |   |   |   | 695,128 |   |
| Direct      costs - general and administrative                   |   |                     | -         |   |   |   | 31,580 |   |   |   | - |   |   |   | 21,858 |   |
| Depreciation,      depletion and amortization                    |   |                     | 1,324,622 |   |   |   | 1,159,482 |   |   |   | 986,232 |   |   |   | 876,946 |   |
| Accretion      of asset retirement obligations                   |   |                     | 4,380     |   |   |   | 4,380 |   |   |   | 4,380 |   |   |   | 4,380 |   |
| Total      operating costs and expenses                          |   |                     | 1,866,510 |   |   |   | 1,655,772 |   |   |   | 1,519,063 |   |   |   | 1,548,312 |   |
|                                                             |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) from operations                               |   |                     | 107,572   |   |   |   | 685,360 |   |   |   | 250,783 |   |   |   | (511,062 | ) |
|                                                             |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                             |   |                     | 28,531    |   |   |   | 20,418 |   |   |   | 18,551 |   |   |   | 17,833 |   |
|                                                             |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                           |   | $                        | 136,103   |   |   | $ | 705,778 |   |   | $ | 269,334 |   |   | $ | (493,229 | ) |
|                                                             |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) allocated to partners                     |   | $                        | 136,103   |   |   | $ | 705,778 |   |   | $ | 269,334 |   |   | $ | (493,229 | ) |
| Less      Managing General Partner interest in net income (loss) |   |                     | 27,221    |   |   |   | 141,156 |   |   |   | 53,867 |   |   |   | (98,646 | ) |
| Net      income (loss) allocated to Investor Partners            |   | $                        | 108,882   |   |   | $ | 564,622 |   |   | $ | 215,467 |   |   | $ | (394,583 | ) |
|                                                             |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) per Investor Partner unit                 |   | $                        | 54        |   |   | $ | 279 |   |   | $ | 107 |   |   | $ | (195 | ) |
|                                                             |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor      Partner units outstanding                          |   |                     | 2,023     |   |   |   | 2,023 |   |   |   | 2,023 |   |   |   | 2,023 |   |

----

Index

|                                                      |   | Quarter Ended            |      |
|-----------------------------------------------------------|--------|--------------------------|-----------|
| STATEMENTS      OF OPERATIONS                             |   | March 31,      2006 |      |   | June 30,      2006 |   |   | September 30,      2006 |   |   | December 31,      2006 |   |
|                                                      |   |                     |      |   |   |   |   |   |   |   |   |   |
| Revenues:                                                 |   |                     |      |   |   |   |   |   |   |   |   |   |
| Oil      and gas sales                                    |   | $                        | 3,769,043 |   |   | $ | 3,092,974 |   |   | $ | 3,915,067 |   |   | $ | 2,818,181 |   |
| Oil      and gas price risk management gain, net          |   |                     | 116,640   |   |   |   | 91,320 |   |   |   | 650,335 |   |   |   | 88,376 |   |
| Total      revenues                                       |   |                     | 3,885,683 |   |   |   | 3,184,294 |   |   |   | 4,565,402 |   |   |   | 2,906,557 |   |
|                                                      |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      costs and expenses:                        |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production      and operating costs                       |   |                     | 301,056   |   |   |   | 373,978 |   |   |   | 686,440 |   |   |   | 522,894 |   |
| Direct      costs - general and administrative            |   |                     | 35        |   |   |   | 438 |   |   |   | 125,701 |   |   |   | 89,020 |   |
| Depreciation,      depletion and amortization             |   |                     | 1,618,533 |   |   |   | 1,373,460 |   |   |   | 1,856,267 |   |   |   | 1,584,627 |   |
| Accretion      of asset retirement obligations            |   |                     | 3,030     |   |   |   | 3,232 |   |   |   | 3,245 |   |   |   | 2,154 |   |
| Total      operating costs and expenses                   |   |                     | 1,922,654 |   |   |   | 1,751,108 |   |   |   | 2,671,653 |   |   |   | 2,198,695 |   |
|                                                      |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      from operations                               |   |                     | 1,963,029 |   |   |   | 1,433,186 |   |   |   | 1,893,749 |   |   |   | 707,862 |   |
|                                                      |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                      |   |                     | 15,257    |   |   |   | 16,074 |   |   |   | 20,215 |   |   |   | 19,322 |   |
|                                                      |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                           |   | $                        | 1,978,286 |   |   | $ | 1,449,260 |   |   | $ | 1,913,964 |   |   | $ | 727,184 |   |
|                                                      |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income allocated to partners                     |   | $                        | 1,978,286 |   |   | $ | 1,449,260 |   |   | $ | 1,913,964 |   |   | $ | 727,184 |   |
| Less      Managing General Partner interest in net income |   |                     | 395,657   |   |   |   | 289,852 |   |   |   | 382,793 |   |   |   | 145,437 |   |
| Net      income allocated to Investor Partners            |   | $                        | 1,582,629 |   |   | $ | 1,159,408 |   |   | $ | 1,531,171 |   |   | $ | 581,747 |   |
|                                                      |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per Investor Partner unit                 |   | $                        | 782       |   |   | $ | 573 |   |   | $ | 757 |   |   | $ | 288 |   |
|                                                      |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor      Partner units outstanding                   |   |                     | 2,023     |   |   |   | 2,023 |   |   |   | 2,023 |   |   |   | 2,023 |   |

----

Index

| STATEMENTS      OF OPERATIONS                                    |   | Period      May 18, 2005 |     |   | Quarter Ended                |   |
|------------------------------------------------------------------|--------|-------------------------------|----------|--------|------------------------------|--------|
|                                                             |   | to      June 30 2005     |     |   | September 30,      2005 |   |   | December 31,      2005 |   |
|                                                             |   |                          |     |   |                         |   |   |   |   |
| Revenues:                                                        |   |                          |     |   |                         |   |   |   |   |
| Oil      and gas sales                                           |   | $                             | -        |   |                         | $      | 955,079 |   |   | $ | 3,487,911 |   |
| Oil      and gas price risk management (loss) gain, net          |   |                          | -        |   |                         |   | (37,694 | ) |   |   | 6,372 |   |
| Total      revenues                                              |   |                          | -        |   |                         |   | 917,385 |   |   |   | 3,494,283 |   |
|                                                             |   |                          |     |   |                         |   |   |   |   |   |   |   |
| Operating      costs and expenses:                               |   |                          |     |   |                         |   |   |   |   |   |   |   |
| Production      and operating costs                              |   |                          | -        |   |                         |   | 156,891 |   |   |   | 522,628 |   |
| Management      fee                                              |   |                          | 607,299  |   |                         |   | - |   |   |   | (508 | ) |
| Direct      costs - general and administrative                   |   |                          | 38       |   |                         |   | - |   |   |   | 32,367 |   |
| Depreciation,      depletion and amortization                    |   |                          | -        |   |                         |   | 358,600 |   |   |   | 1,663,101 |   |
| Accretion      of asset retirement obligations                   |   |                          | -        |   |                         |   | 851 |   |   |   | 3,209 |   |
| Total      operating costs and expenses                          |   |                          | 607,337  |   |                         |   | 516,342 |   |   |   | 2,220,797 |   |
|                                                             |   |                          |     |   |                         |   |   |   |   |   |   |   |
| (Loss)      income from operations                               |   |                          | (607,337 | )      |                         |   | 401,043 |   |   |   | 1,273,486 |   |
|                                                             |   |                          |     |   |                         |   |   |   |   |   |   |   |
| Interest      income                                             |   |                          | 91,243   |   |                         |   | 192,909 |   |   |   | 117,340 |   |
|                                                             |   |                          |     |   |                         |   |   |   |   |   |   |   |
| Net      (loss) income                                           |   | $                             | (516,094 | )      |                         | $      | 593,952 |   |   | $ | 1,390,826 |   |
|                                                             |   |                          |     |   |                         |   |   |   |   |   |   |   |
| Net      (loss) income allocated to partners                     |   | $                             | (516,094 | )      |                         | $      | 593,952 |   |   | $ | 1,390,826 |   |
| Less      Managing General Partner interest in net (loss) income |   |                          | 18,241   |   |                         |   | 118,790 |   |   |   | 278,165 |   |
| Net      (loss) income allocated to Investor Partners            |   | $                             | (534,335 | )      |                         | $      | 475,162 |   |   | $ | 1,112,661 |   |
|                                                             |   |                          |     |   |                         |   |   |   |   |   |   |   |
| Net      (loss) income per Investor Partner unit                 |   | $                             | (264     | )      |                         | $      | 235 |   |   | $ | 550 |   |
|                                                             |   |                          |     |   |                         |   |   |   |   |   |   |   |
| Investor      Partner units outstanding                          |   |                          | 2,023    |   |                         |   | 2,023 |   |   |   | 2,023 |   |

----

Index

| Statements      of Cash Flows                                                               |   | Three      months ended March 31,      2007 |       |   | Six      months ended June 30,      2007 |   |       | Nine      months ended September 30,      2007 |   |
|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------|------------|--------|-----------------------------------------------|--------|------------|-----------------------------------------------------|--------|
| Cash      flows from operating activities:                                                  |   |                                             |       |   |                                          |   |       |                                                |   |
| Net      income                                                                             |   | $                                                | 136,103    |   |                                          | $      | 841,881    |                                                |   | $ | 1,111,215 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |                                             |       |   |                                          |   |       |                                                |   |   |   |   |
| Depreciation,      depletion and amortization                                               |   |                                             | 1,324,622  |   |                                          |   | 2,484,104  |                                                |   |   | 3,470,336 |   |
| Accretion      of asset retirement obligations                                              |   |                                             | 4,380      |   |                                          |   | 8,760      |                                                |   |   | 13,140 |   |
| Unrealized  loss      on derivative transactions                                  |   |                                             | 445,689    |   |                                          |   | 325,266    |                                                |   |   | 424,853 |   |
| Changes      in operating assets and liabilities:                                           |   |                                             |       |   |                                          |   |       |                                                |   |   |   |   |
| Decrease      in accounts receivable                                                        |   |                                             | 378,214    |   |                                          |   | 663,523    |                                                |   |   | 1,093,214 |   |
| Increase      in accounts payable                                                           |   |                                             | 73,565     |   |                                          |   | 45,638     |                                                |   |   | 4,068 |   |
| Decrease      in due from/to Managing General Partner                                       |   |                                             | (418,290   | )      |                                          |   | (651,860   | )                                                   |   |   | (700,501 | ) |
| Net      cash provided by operating activities                                              |   |                                             | 1,944,283  |   |                                          |   | 3,717,312  |                                                |   |   | 5,416,325 |   |
|                                                                                        |   |                                             |       |   |                                          |   |       |                                                |   |   |   |   |
| Cash      flows from financing activities:                                                  |   |                                             |       |   |                                          |   |       |                                                |   |   |   |   |
| Distributions      to Partners                                                              |   |                                             | (2,132,693 | )      |                                          |   | (3,894,540 | )                                                   |   |   | (5,584,133 | ) |
| Net      cash used in financing activities                                                  |   |                                             | (2,132,693 | )      |                                          |   | (3,894,540 | )                                                   |   |   | (5,584,133 | ) |
|                                                                                        |   |                                             |       |   |                                          |   |       |                                                |   |   |   |   |
| Net      decrease in cash and cash equivalents                                              |   |                                             | (188,410   | )      |                                          |   | (177,228   | )                                                   |   |   | (167,808 | ) |
| Cash      and cash equivalents, beginning of period                                         |   |                                             | 451,698    |   |                                          |   | 451,698    |                                                |   |   | 451,698 |   |
| Cash      and cash equivalents, end of period                                               |   | $                                                | 263,288    |   |                                          | $      | 274,470    |                                                |   | $ | 283,890 |   |

----

Index

| Statements      of Cash Flows                                                               |   | Three      months ended March 31,      2006 |       |   | Six      months ended June      30, 2006 |   |       | Nine      months ended September 30,      2006 |   |
|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------|------------|--------|------------------------------------------|--------|------------|-----------------------------------------------------|--------|
| Cash      flows from operating activities:                                                  |   |                                             |       |   |                                     |   |       |                                                |   |
| Net      income                                                                             |   | $                                                | 1,978,286  |   |                                     | $      | 3,427,546  |                                                |   | $ | 5,341,510 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |                                             |       |   |                                     |   |       |                                                |   |   |   |   |
| Depreciation,      depletion and amortization                                               |   |                                             | 1,618,533  |   |                                     |   | 2,991,993  |                                                |   |   | 4,848,260 |   |
| Accretion      of asset retirement obligations                                              |   |                                             | 3,030      |   |                                     |   | 6,262      |                                                |   |   | 9,507 |   |
| Unrealized      gain on derivative transactions                                             |   |                                             | (58,638    | )      |                                     |   | (143,579   | )                                                   |   |   | (773,429 | ) |
| Changes      in operating assets and liabilities:                                           |   |                                             |       |   |                                     |   |       |                                                |   |   |   |   |
| Increase      in accounts receivable                                                        |   |                                             | (310,236   | )      |                                     |   | 394,937    |                                                |   |   | (632,774 | ) |
| Decrease      in accounts payable                                                           |   |                                             | (186,601   | )      |                                     |   | (214,194   | )                                                   |   |   | (82,057 | ) |
| Increase      in due from/to Managing General Partner                                       |   |                                             | (76,781    | )      |                                     |   | (174,441   | )                                                   |   |   | (47,021 | ) |
| Net      cash provided by operating activities                                              |   |                                             | 2,967,593  |   |                                     |   | 6,288,524  |                                                |   |   | 8,663,996 |   |
|                                                                                        |   |                                             |       |   |                                     |   |       |                                                |   |   |   |   |
| Cash      flows from financing activities:                                                  |   |                                             |       |   |                                     |   |       |                                                |   |   |   |   |
| Distributions      to Partners                                                              |   |                                             | (2,951,723 | )      |                                     |   | (6,268,204 | )                                                   |   |   | (8,642,786 | ) |
| Net      cash used in financing activities                                                  |   |                                             | (2,951,723 | )      |                                     |   | (6,268,204 | )                                                   |   |   | (8,642,786 | ) |
|                                                                                        |   |                                             |       |   |                                     |   |       |                                                |   |   |   |   |
| Net      increase in cash and cash equivalents                                              |   |                                             | 15,870     |   |                                     |   | 20,320     |                                                |   |   | 21,210 |   |
| Cash      and cash equivalents, beginning of period                                         |   |                                             | 401,621    |   |                                     |   | 401,621    |                                                |   |   | 401,621 |   |
| Cash      and cash equivalents, end of period                                               |   | $                                                | 417,491    |   |                                     | $      | 421,941    |                                                |   | $ | 422,831 |   |

----

Index

| Statements      of Cash Flows                                                                  |   | Period      May 18, 2005 to      June 30 2005 |       |   | Six      months ended September 30,      2005 |   |
|------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|------------|--------|----------------------------------------------------|--------|
| Cash      flows from operating activities:                                                     |   |                                                    |       |   |                                               |   |
| Net      (loss) income                                                                         |   | $                                                       | (516,094   | )      |                                               | $      | 77,858 |   |
| Adjustments      to reconcile net (loss) income to net cash used in operating      activities: |   |                                                    |       |   |                                               |   |   |   |
| Depreciation,      depletion and amortization                                                  |   |                                                    | -          |   |                                               |   | 358,600 |   |
| Accretion      of asset retirement obligations                                                 |   |                                                    | -          |   |                                               |   | 851 |   |
| Unrealized      loss on derivative transactions                                                |   |                                                    | -          |   |                                               |   | 19,935 |   |
| Changes      in operating assets and liabilities:                                              |   |                                                    |       |   |                                               |   |   |   |
| Increase      in accounts receivable                                                           |   |                                                    | -          |   |                                               |   | (955,079 | ) |
| Increase      in accounts payable                                                              |   |                                                    | -          |   |                                               |   | 174,650 |   |
| Decrease      in due from/to Managing General Partner                                          |   |                                                    | (84,516    | )      |                                               |   | (15,971 | ) |
| Net      cash used in operating activities                                                     |   |                                                    | (600,610   | )      |                                               |   | (339,156 | ) |
|                                                                                           |   |                                                    |       |   |                                               |   |   |   |
| Cash      flows from investing activities:                                                     |   |                                                    |       |   |                                               |   |   |   |
| Capital      expenditures for oil and gas properties                                           |   |                                                    | (1,751,471 | )      |                                               |   | (24,346,762 | ) |
| Net      cash used in investing activities                                                     |   |                                                    | (1,751,471 | )      |                                               |   | (24,346,762 | ) |
|                                                                                           |   |                                                    |       |   |                                               |   |   |   |
| Cash      flows from financing activities:                                                     |   |                                                    |       |   |                                               |   |   |   |
| Investor      Partners' contributions                                                          |   |                                                    | 40,452,761 |   |                                               |   | 40,452,761 |   |
| Managing      General Partner contribution                                                     |   |                                                    | 8,942,916  |   |                                               |   | 8,942,916 |   |
| Syndication      costs paid                                                                    |   |                                                    | (4,074,306 | )      |                                               |   | (4,074,306 | ) |
| Net      cash provided by investing activities                                                 |   |                                                    | 45,321,371 |   |                                               |   | 45,321,371 |   |
|                                                                                           |   |                                                    |       |   |                                               |   |   |   |
| Net      increase in cash and cash equivalents                                                 |   |                                                    | 42,969,290 |   |                                               |   | 20,635,453 |   |
| Cash      and cash equivalents, beginning of period                                            |   |                                                    | -          |   |                                               |   | - |   |
| Cash      and cash equivalents, end of period                                                  |   | $                                                       | 42,969,290 |   |                                               | $      | 20,635,453 |   |

----

Index

----

Index

|                                               |   |  Quarter Ended |      |
|----------------------------------------------------|--------|---------------------|-----------|
|                                               |   | March 31, 2007 |      |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |
| Transaction                                        |   |                |      |   |   |   |   |   |   |   |   |   |
| Well      charges                                  |   | $                   | 67,309    |   |   | $ | 65,316 |   |   | $ | 65,442 |   |   | $ | 62,227 |   |
| Gas      marketing, supplies and equipment         |   |                | 281,378   |   |   |   | 131,571 |   |   |   | 193,548 |   |   |   | 392,795 |   |
| Gathering,      compression and processing fees    |   |                | 94,568    |   |   |   | 84,959 |   |   |   | 59,583 |   |   |   | 36,812 |   |
| Direct      costs - general and administrative     |   |                | -         |   |   |   | 31,580 |   |   |   | - |   |   |   | 21,858 |   |
| Distributions*                                     |   | $                   | 426,538   |   |   | $ | 341,308 |   |   | $ | 337,918 |   |   | $ | 255,802 |   |
|                                               |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |  Quarter Ended |      |
|                                               |   | March 31, 2006      |      |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |
| Transaction                                        |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Well      charges                                  |   | $                   | 56,408.00 |   |   | $ | 58,443.00 |   |   | $ | 65,380.00 |   |   | $ | 66,512.00 |   |
| Gas      marketing, supplies and equipment         |   |                | (10,240   | ) |   |   | 155,905 |   |   |   | 263,101 |   |   |   | 218,680 |   |
| Gathering,      compression and processing fees    |   |                | 5,955     |   |   |   | 11,909 |   |   |   | 108,351 |   |   |   | 116,046 |   |
| Direct      costs - general and administrative     |   |                | 35        |   |   |   | 438 |   |   |   | 125,701 |   |   |   | 89,020 |   |
| Distributions*                                     |   | $                   | 590,344   |   |   | $ | 663,295 |   |   | $ | 474,916 |   |   | $ | 655,980 |   |
|                                               |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |                |      |   |   | Period from      May 18, 2005 to      June 30, 2005 |   |   | Quarter      Ended September 30, 2005 |   |   | Quarter      Ended December 31, 2005 |   |
| Transaction                                        |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital      contribution                          |   |                |      |   |   | $ | 8,942,916 |   |   | $ | - |   |   | $ | - |   |
| Syndication      costs                             |   |                |      |   |   |   | 4,074,306 |   |   |   | - |   |   |   | - |   |
| Management      fee                                |   |                |      |   |   |   | 607,299 |   |   |   | - |   |   |   | (508 | ) |
| Sales      of leases                               |   |                |      |   |   |   | - |   |   |   | - |   |   |   | 635,880 |   |
| Drilling      advances to Managing General Partner |   |                |      |   |   |   | 33,508,252 |   |   |   | - |   |   |   | 10,570,448 |   |
| Well      charges                                  |   |                |      |   |   |   | - |   |   |   | 7,246 |   |   |   | 42,156 |   |
| Gas      marketing, supplies and equipment         |   |                |      |   |   |   | - |   |   |   | 50,102 |   |   |   | 111,492 |   |
| Gathering,      compression and processing fees    |   |                |      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Direct      costs - general and administrative     |   |                |      |   |   |   | 38 |   |   |   | - |   |   |   | 32,367 |   |
| Distributions*                                     |   |                |      |   |   | $ | - |   |   | $ | - |   |   | $ | 155,984 |   |

----

Index

|                      |   | Quarter Ended       |     |
|---------------------------|--------|---------------------|----------|
|                      |   | March 31, 2007 |     |   | June 30, 2007 |   |   | September 30, 2007 |   |
|                      |   | Short-term          |     |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |
| Natural      gas floors   |   | $                   | 528,681  |   |   | $ | - |   |   | $ | 528,681 |   |   | $ | 536,855 |   |   | $ | 142,542 |   |   | $ | 679,397 |   |   | $ | 408,111 |   |   | $ | 29,474 |   |   | $ | 437,585 |   |
| Natural      gas ceilings |   |                | (159,755 | ) |   |   | - |   |   |   | (159,755 | ) |   |   | (111,393 | ) |   |   | (76,386 | ) |   |   | (187,779 | ) |   |   | (34,889 | ) |   |   | (10,307 | ) |   |   | (45,196 | ) |
| Oil      floors           |   |                | 2,649    |   |   |   | - |   |   |   | 2,649 |   |   |   | 380 |   |   |   | - |   |   |   | 380 |   |   |   | 22 |   |   |   | - |   |   |   | 22 |   |
| Total                     |   | $                   | 371,575  |   |   | $ | - |   |   | $ | 371,575 |   |   | $ | 425,842 |   |   | $ | 66,156 |   |   | $ | 491,998 |   |   | $ | 373,244 |   |   | $ | 19,167 |   |   | $ | 392,411 |   |

|                      |   | Quarter Ended       |    |
|---------------------------|--------|---------------------|---------|
|                      |   | March 31, 2006 |    |   | June 30, 2006 |   |   | September 30, 2006 |   |
|                      |   | Short-term          |    |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |
| Natural      gas floors   |   | $                   | 58,820  |   |   | $ | 25,539 |   |   | $ | 84,359 |   |   | $ | 141,905 |   |   | $ | 29,354 |   |   | $ | 171,259 |   |   | $ | 534,428 |   |   | $ | 221,414 |   |   | $ | 755,842 |   |
| Natural      gas ceilings |   |                | (25,721 | ) |   |   | - |   |   |   | (25,721 | ) |   |   | (27,680 | ) |   |   | - |   |   |   | (27,680 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Oil      floors           |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14,711 |   |   |   | 2,877 |   |   |   | 17,588 |   |
| Total                     |   | $                   | 33,099  |   |   | $ | 25,539 |   |   | $ | 58,638 |   |   | $ | 114,225 |   |   | $ | 29,354 |   |   | $ | 143,579 |   |   | $ | 549,139 |   |   | $ | 224,291 |   |   | $ | 773,430 |   |

|                      |   | Period      May 18 2005 (date of inception)      to June 30, 2005 |   |   | Quarter      Ended September 30,      2005 |   |
|---------------------------|--------|-----------------------------------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                      |   | Short-term                                                                  |   |   | Long-term                                       |   |   | Total |   |   | Short-term |   |   | Long-term |   |   | Total |   |
| Natural      gas floors   |   | $                                                                           | -      |   |                                            | $      | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Natural      gas ceilings |   |                                                                        | -      |   |                                            |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Oil      ceilings         |   |                                                                        | -      |   |                                            |   | - |   |   |   | - |   |   |   | (19,935 | ) |   |   | - |   |   |   | (19,935 | ) |
| Total                     |   | $                                                                           | -      |   |                                            | $      | - |   |   | $ | - |   |   | $ | (19,935 | ) |   | $ | - |   |   | $ | (19,935 | ) |

----

Index

|                                                    |   | Quarter Ended       |     |   |               |   |
|---------------------------------------------------------|--------|---------------------|----------|--------|--------------------|--------|
|                                                    |   | March 31, 2007 |     |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |   | Total |   |
|                                                    |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |
| Realized      gains (losses)                            |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |
| Oil                                                     |   | $                   | (5,880   | )      |               | $      | (6,000 | ) |   | $ | (1,466 | ) |   | $ | (1,809 | ) |   | $ | (15,155 | ) |
| Natural      Gas                                        |   |                | (7,054   | )      |               |   | 118,983 |   |   |   | 192,864 |   |   |   | 189,378 |   |   |   | 494,171 |   |
| Realized      gain(loss)                                |   |                | (12,934  | )      |               |   | 112,983 |   |   |   | 191,398 |   |   |   | 187,569 |   |   |   | 479,016 |   |
| Unrealized      gain(loss)                              |   |                | (445,689 | )      |               |   | 120,423 |   |   |   | (99,587 | ) |   |   | (654,652 | ) |   |   | (1,079,505 | ) |
| Oil      and gas price risk management (loss) gain, net |   | $                   | (458,623 | )      |               | $      | 233,406 |   |   | $ | 91,811 |   |   | $ | (467,083 | ) |   | $ | (600,489 | ) |

|                                                    |   | Quarter Ended       |    |   |               |   |
|---------------------------------------------------------|--------|---------------------|---------|--------|--------------------|--------|
|                                                    |   | March 31, 2006 |    |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |   | Total |   |
|                                                    |   |                |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Realized      gains (losses)                            |   |                |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Oil                                                     |   | $                   | -       |   |               | $      | - |   |   | $ | - |   |   | $ | (4,365 | ) |   | $ | (4,365 | ) |
| Natural      Gas                                        |   |                | 58,002  |   |               |   | 6,379 |   |   |   | 20,485 |   |   |   | 48,906 |   |   |   | 133,772 |   |
| Realized      gain(loss)                                |   |                | 58,002  |   |               |   | 6,379 |   |   |   | 20,485 |   |   |   | 44,541 |   |   |   | 129,407 |   |
| Unrealized      gain(loss)                              |   |                | 58,638  |   |               |   | 84,941 |   |   |   | 629,850 |   |   |   | 43,835 |   |   |   | 817,264 |   |
| Oil      and gas price risk management gain (loss), net |   | $                   | 116,640 |   |               | $      | 91,320 |   |   | $ | 650,335 |   |   | $ | 88,376 |   |   | $ | 946,671 |   |

|                                                    |   | Period May 18, 2005 |   |   | Quarter Ended           |   |    |                   |   |
|---------------------------------------------------------|--------|--------------------------|--------|--------|-------------------------|--------|---------|------------------------|--------|
|                                                    |   | to June 30, 2005    |   |   | September 30, 2005 |   |    | December 31, 2005 |   |   | Total |   |
|                                                    |   |                     |   |   |                    |   |    |                   |   |   |   |   |
| Realized      gains (losses)                            |   |                     |   |   |                    |   |    |                   |   |   |   |   |
| Oil                                                     |   |                     | -      |   |                    | $      | (17,759 | )                      |   | $ | (13,563 | ) |   | $ | (31,322 | ) |
| Natural      Gas                                        |   |                     | -      |   |                    |   | -       |                   |   |   | - |   |   |   | - |   |
| Realized      gain(loss)                                |   |                     | -      |   |                    |   | (17,759 | )                      |   |   | (13,563 | ) |   |   | (31,322 | ) |
| Unrealized      gain(loss)                              |   |                     | -      |   |                    |   | (19,935 | )                      |   |   | 19,935 |   |   |   | - |   |
| Oil      and gas price risk management (loss) gain, net |   | $                        | -      |   |                    | $      | (37,694 | )                      |   | $ | 6,372 |   |   | $ | (31,322 | ) |

----

Index

|                                                           |   |  As of         |       |
|----------------------------------------------------------------|--------|---------------------|------------|
|                                                           |   | March 31, 2007 |       |   | June 30, 2007 |   |   | September 30, 2007 |   |   | December 31, 2007 |   |
|                                                           |   |                |       |   |   |   |   |   |   |   |   |   |
| Leasehold      costs                                           |   | $                   | 667,779    |   |   | $ | 667,779 |   |   | $ | 666,380 |   |   | $ | 686,309 |   |
| Development      costs                                         |   |                | 44,341,741 |   |   |   | 44,341,741 |   |   |   | 44,343,140 |   |   |   | 44,323,211 |   |
| Oil      and gas properties, successful efforts method         |   |                | 45,009,520 |   |   |   | 45,009,520 |   |   |   | 45,009,520 |   |   |   | 45,009,520 |   |
| Wells      in progress                                         |   |                | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Drilling      advances to Managing General Partner             |   |                | 54,741     |   |   |   | 54,741 |   |   |   | 54,741 |   |   |   | 54,741 |   |
| Oil      and gas properties, at cost                           |   |                | 45,064,261 |   |   |   | 45,064,261 |   |   |   | 45,064,261 |   |   |   | 45,064,261 |   |
| Less      accumulated depreciation, depletion and amortization |   |                | (9,779,210 | ) |   |   | (10,938,692 | ) |   |   | (11,924,924 | ) |   |   | (12,801,870 | ) |
| Oil      and gas properties, net                               |   | $                   | 35,285,051 |   |   | $ | 34,125,569 |   |   | $ | 33,139,337 |   |   | $ | 32,262,391 |   |

|                                                           |   |  As of         |       |
|----------------------------------------------------------------|--------|---------------------|------------|
|                                                           |   | March 31, 2006 |       |   | June 30, 2006 |   |   | September 30, 2006 |   |   | December 31, 2006 |   |
|                                                           |   |                |       |   |   |   |   |   |   |   |   |   |
| Leasehold      costs                                           |   | $                   | 629,941    |   |   | $ | 662,974 |   |   | $ | 665,734 |   |   | $ | 666,380 |   |
| Development      costs                                         |   |                | 31,080,994 |   |   |   | 37,555,068 |   |   |   | 44,236,494 |   |   |   | 44,342,457 |   |
| Oil      and gas properties, successful efforts method         |   |                | 31,710,935 |   |   |   | 38,218,042 |   |   |   | 44,902,228 |   |   |   | 45,008,837 |   |
| Wells      in progress                                         |   |                | 12,493,942 |   |   |   | 5,585,050 |   |   |   | - |   |   |   | - |   |
| Drilling      advances to Managing General Partner             |   |                | 791,554    |   |   |   | 1,193,339 |   |   |   | 94,203 |   |   |   | 55,424 |   |
| Oil      and gas properties, at cost                           |   |                | 44,996,431 |   |   |   | 44,996,431 |   |   |   | 44,996,431 |   |   |   | 45,064,261 |   |
| Less      accumulated depreciation, depletion and amortization |   |                | (3,640,234 | ) |   |   | (5,013,694 | ) |   |   | (6,869,961 | ) |   |   | (8,454,588 | ) |
| Oil      and gas properties, net                               |   | $                   | 41,356,197 |   |   | $ | 39,982,737 |   |   | $ | 38,126,470 |   |   | $ | 36,609,673 |   |

|                                                           |   | As of              |      |   |                    |   |
|----------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------------|--------|
|                                                           |   | June 30, 2005 |      |   | September 30, 2005 |   |   | December 31, 2005 |   |
|                                                           |   |               |      |   |                    |   |   |   |   |
| Leasehold      costs                                           |   | $                  | -         |   |                    | $      | 180,146 |   |   | $ | 635,880 |   |
| Development      costs                                         |   |               | 2,411,473 |   |                    |   | 21,737,585 |   |   |   | 30,590,842 |   |
| Oil      and gas properties, successful efforts method         |   |               | 2,411,473 |   |                    |   | 21,917,731 |   |   |   | 31,226,722 |   |
| Wells      in progress                                         |   |               | 4,012,822 |   |                    |   | 6,740,121 |   |   |   | 13,714,285 |   |
| Drilling      advances to Managing General Partner             |   |               | 55,424    |   |                    |   | 55,424 |   |   |   | 55,424 |   |
| Oil      and gas properties, at cost                           |   |               | 6,479,719 |   |                    |   | 28,713,276 |   |   |   | 44,996,431 |   |
| Less      accumulated depreciation, depletion and amortization |   |               | -         |   |                    |   | (358,600 | ) |   |   | (2,021,701 | ) |
| Oil      and gas properties, net                               |   | $                  | 6,479,719 |   |                    | $      | 28,354,676 |   |   | $ | 42,974,730 |   |

----